Branded hotels' occupancies grow but tariffs yet to catch pace

Average tariff declined 30% since FY08 to Rs 5,541 in FY16, says hotel consultancy firm HVS

The rising occupancy at branded hotels in the domestic market is yet to reflect on the room tariffs. Average occupancy rates is estimated to have hit a nine-year high of 65 per cent in FY17 bringing cheer to the industry. Tariffs, even after an improvement, is lower than the last peak seen in several years of the last one decade.

The average tariff for branded hotels declined 30 per cent since FY08 to Rs 5,541 in FY16, HVS data showed. Tariffs would have seen some growth in FY17 but would be nowhere closer to the Rs 6,000 plus rates seen between