However, JLL said the decline is the most modest compared to other major Indian cities.
JLL said the city’s RevPAR is slowly rising as the central and state governments have gradually eased lockdown restrictions, with international repatriation flights and some emerging domestic travel.
According to the note, during the lockdown months between April and June, many hotels in Delhi served as quarantine facilities and provided accommodation for medical staff. Most hotels at Aerocity catered to quarantine business driven by the 'Vande Bharat Mission' repatriation flights.
Jaideep Dang, managing director, Hotels and Hospitality Group (India) at JLL said Delhi’s hotel demand is driven by corporate business travel, government and judiciary linked travel and leisure segment travel. "Out of these, government, judiciary and administration linked travel will likely come back sooner followed by business-critical travel. Leisure travel is not going to come back in next couple of years," he added.
ET reported this week that five months after they were allowed to open for regular business, some hotels in the national capital are enticing guests with reduced room rates, immunity booster menus, office space arrangements, besides other offers. Chains such as ITC Hotels, IHCL and Hyatt said the initial response has been encouraging.
The Delhi government allowed hotels to reopen on August 19.
According to the note, 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. But we do not expect distress sales in the market yet, since most owners are having strong balance sheets and are optimistic about the sector’s recovery," the note stated.
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