Delhi has always been a strong hospitality market and hotel owners expect a faster recovery in comparison to other major cities. There are very few high-ticket hotel assets on sale in the city.
Delhi has seen significant decline in Revenue per Available Room (RevPAR) YTD July 2020, declining 44.3 per cent over the same period in the previous year. However, this decline is the most modest decline as compared to all major cities in India, reeling under the impact of COVID-19 pandemic. The city’s RevPAR is slowly rising as the Central and State Governments have gradually eased lockdown restrictions, with international repatriation flights and some domestic travel leading the way for recovery of the hospitality sector in the nation’s capital, according to JLL India Hotels and Hospitality Group.
The city is amongst the first key markets to bring the COVID-19 situation under control with a high recovery rate. Delhi has gradually opened its borders to facilitate business travel movement from the neighbouring cities of Gurugram and Noida. In a recent announcement in late August, Delhi hotels in non-containment zones have been allowed to open.
Hotels are also receiving several inquiries for weddings and social events with limited gatherings, within the allowed limit of 50 people per function. Many hotel venues have been pre-booked for all auspicious wedding dates in November. Food and beverage (F&B) service is being revamped across most hotels with the removal of buffets and introduction of pre-plated meals, online delivery listings as well as delivery of do-it-yourself (DIY) meal kits. Hotels are looking at alternative sources of income.