1. Compared to Quarter1 FY20 decline of 1%, revenue per available room (RevPar) picked up in ensuing months with 3% YoY growth in August as the situation normalised following one-off impacts of spike in airfares & election.
  2. City-wise markets of Mumbai, Bengaluru and Hyderabad remain the strongest with Goa and Kerala also picking up. Chennai and Ahmedabad continue to remain weak.
  3. The recent GST cut – positive for the sector at large – benefits the luxury segment the most and is likely to spur its average room rate (ARR). With a sharp jump in the industry ARR awaited, margins of asset-heavy players are likely to expand only marginally.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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