India's hotel industry is estimated to face a whopping business loss of Rs 90,000 crore during this calendar year, as all hotels are closed due to nationwide lockdown to control coronavirus disease, according to a report by HVS and Anarock.
"Occupancies across hotels in key cities witnessed a sharp decline, as travel restrictions intensified and India went into lockdown towards the end of March 2020," HVS-Anarock said in a newsletter.
Given the evolving scenario, the consultants said they have revised earlier estimates of the overall revenue loss that the industry would face in 2020.
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"We expect the overall revenue of the Indian hotel sector to decline by approximately Rs 90,000 crore in 2020, reflecting an erosion of 57 percent compared to last year," the newsletter said.
Out of total revenue loss likely to be faced by the hotel industry, organised hotel operators are estimated to face a revenue loss of over Rs 40,000 crore.
During March, the occupancy in hotels across top 13 markets dropped by 53 percent compared to the same month last year.
For the full year, the report expects a decline of 48 percent.
The average daily rate (ADR) fell 7 percent in March to Rs 5,690 compared with the corresponding period of the previous year.
HVS is a leading global consultant for the hospitality sector and helps companies in financing, developing, owning, or operating a hospitality property. It has a team of more than 300 people with over 50 offices across the world. In India, it has partnered with Anarock to tap more opportunities.Follow our full coverage of the coronavirus pandemic here.