New Delhi: Occupancy rates in hotels have registered a significant improvement due to a robust resurgence in demand, and reduced supplies over the past couple of years, reaching an average of 67-68% in the current ongoing fiscal up from 65% in the fiscal year 2023 and a significant upswing from the 50% recorded in FY22, a study by CareEdge Ratings shows.
This uptick in occupancy has not only empowered industry players with enhanced pricing leverage but has also propelled an increase in average room rates. The culmination of these favourable factors has translated into a noticeable improvement in the industry’s overall profitability during FY23.
CareEdge Ratings analysed a sample set of 62 listed players and found, the operating level profitability for FY23 was reported at an impressive 27.2 percent and it continues to be in similar range in the current fiscal as well. This represents a substantial leap from the 14.3 percent recorded in FY22 and the 19.3 percent reported in FY19…
