Cautious Optimism for India Hotel Recovery

The health of India’s hotel industry is returning as data from STR Global, the leading provider of market information to the global hotel industry, shows a concerted upward trend and recent positive year-on-year growth in revenue per available room (RevPAR).

Such improvement in international tourism arrivals has come as fears about the spread of the H1N1 flu epidemic have begun to fade. The impact of terrorism also is lessening despite the recent bombing in Pune in mid-February in which at least nine people died. However, several countries, including the U.K., the U.S. and Australia still have issued strong warnings to their citizens, urging them to observe high vigilance and to keep a low profile if visiting India.

Factors working in favour of India’s hotel market include forecasted economic growth of 8.5 percent ± 0.25 percent for 2010-2011 (Source: Ministry of Finance, Economic Survey 2009-2010), the Commonwealth Games hosted by Delhi during October, and the trial-run of a “visa on arrival” scheme for visitors from Singapore, Finland, New Zealand, Luxembourg and Japan who plan trips on short notice.

“Whilst the prospects for India appear promising, make no mistake the last year has been a difficult one”, said Elizabeth Randall, managing director at STR Global.

The table below shows the extent of these difficulties with data taken from STR Global’s Indian database of 240 hotels representing more than 35,000 hotel rooms.

Market Performance – Selected India Cities (Percentage Change 2009 to 2008, Indian Rupees)


Average Daily Rate










Delhi - NCR




















Source: STR Global


About STR Global:

STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information.  STR Global is part of the STR family of companies and is proudly associated with STR, RRC, STR Analytics and   For more information, please visit

Date Listed: March 4, 2010

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