Higher check-ins boost occupancy at branded hotels to 9-year high

Tariff growth icing on cake; trend expected to continue in FY18

The domestic hospitality sector seems to have gained firm ground after years of muted performance, with average occupancy at branded hotels estimated to be at a nine-year high of 65 per cent in FY17.

At the individual level, some companies are getting higher rates. Better still, growth in occupancy and tariff is projected to continue in FY18. Stocks of listed hotels are also reacting to this positive development.

Achin Khanna, managing director, consultation and valuation, HVS— a consulting and research firm, said it was quite likely the closing occupancy will be close to 65 per cent in FY17.