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Coronavirus impact drags India hotel occupancy 12 percent lower in first week of March

Coronavirus impact drags India hotel occupancy 12 percent lower in first week of March

Coronavirus impact drags India hotel occupancy 12 percent lower in first week of March
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By CNBC-TV18 Mar 18, 2020 12:24:15 PM IST (Updated)

The Coronavirus outbreak is slowly beginning to take a toll on India and the hotel business, says a report by Dolat Capital, quoting data by Smith Travel Research.

The Coronavirus outbreak is slowly beginning to take a toll on India and the hotel business, says a report by Dolat Capital, quoting data by Smith Travel Research.

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“The STR data for the first week of March shows that hotels in India witnessed a 12 percent drop in occupancy. Our check with STR reveals that drop in occupancy and RevPAR (revenue per available room) are similar. Business cities Gurugram, Bengaluru, Hyderabad, Mumbai etc have seen a larger drop,” says the report.
Dolat analysts believe the drop in successive weeks would be higher.
“This would be on account of the central and state governments taking stringent measures to curtail the spread of the virus by implementing travel bans, revoking visas & restricting some states to operate at full capacity, the impact on hotels is inevitable,” the Dolat report says.
Hotels in India have seen significant client retrenchment, transient and MICE (Meetings, incentives, conferences and exhibitions) booking cancellations, international corporate travel pullbacks and a general fear amidst domestic travellers to postpone nonessential travel, the report says.
Hospitality and aviation stocks have been the hardest hit during the market meltdown over the last couple of weeks.
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