The premium hotels sector is expected to log strong growth across operating parameters in the current and next fiscals, stated Crisil.

Recovery is visible across categories – leisure, corporate, MICE (meetings, incentives, conferences, and exhibitions), as well as international travel.

The premium hotels sector is expected to log strong growth across operating parameters in the current and next fiscals riding on continued recovery of the economy and waning of the Covid-19 pandemic, according to CRISIL.
 
Recovery is visible across categories – leisure, corporate, MICE (meetings, incentives, conferences, and exhibitions), as well as international travel.
 
Says Pushan Sharma, Director- Research, CRISIL Market Intelligence & Analytics, “The average room rate (ARR) of premium hotels increased 13% on-year in fiscal 2022 and is expected to rise 19-21% in fiscal 2023 to a decadal high of Rs 7,500-10,000. The occupancy level, which was at 50% in fiscal 2022, will also touch a decadal high of 67-72% this fiscal. This is in sharp contrast to fiscal 2021, which saw ARR plunge 20-25% on-year and occupancy halve to 31% following the pandemic onset.”