Most hotel General Managers (GMs) expect the demand in the hospitality sector to pick up by the fourth quarter of 2020, stated a survey conducted by Anarock- HVS India & South Asia. The survey was conducted in the last week of April 2020.
The report revealed that over 42 per cent of the GMs believe that occupancy would be close to or higher than 50 per cent, while 46 per cent of the GMs believe that occupancy will remain below 40 per cent.
The survey was jointly released by Anarock- HVS India & South Asia stated, “Occupancies across hotels in key cities witnessed a sharp decline, as travel restrictions intensified and India continued the lockdown.” While India saw a decline of 82 per cent in occupancies, Thailand, one of the most preferred destinations in Asia, saw a drop of 90 per cent.
The survey revealed that most of the hotel GMs may not be comfortable with the low occupancy, but over 71 per cent of the GMs will not discount their rates by more than 20 per cent. Only 3 per cent of the hotel managers are considering giving more than 30 per cent of average discount rate (ADR).
Leisure hotels reopening after July are expected to discount the least, while business hotels reopening after July will discount the most.