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NEW DELHI: Hotel occupancies in India surpassed the 65% mark in April 2022, up 100 basis points from April 2019, with Mumbai region remaining the market leader with record-high hotel occupancies, according to a new report.

The city recorded occupancies of over 80%, owing to the Indian Premier League and large-ticket conferences, according to a report by Motilal Oswal Financial Services.

India's hotel occupancies surpassed the 65% mark in April 2022, a first since the onset of the covid-19 pandemic, with annual recurring revenue (ARR) rising by 4% from April 2019 levels to 5,850. This led to revenue per available room (RevPAR) rising 5% from April 2019 to 3,804.

On a year-on-year basis, the hospitality basket reported a higher incremental EBITDA to incremental revenue in the fourth quarter of FY22, with East India Hotels leading the pack (48%) followed by Indian Hotels, Chalet, and Lemon Tree Hotels. RevPAR saw an uptick in business, with leisure travel near normalised levels in April 2022.

The momentum continued in May 2022, it said and added demand versus supply crunch will propel mid- to long-term ARR growth.

Aggregate revenue for the hospitality basket of the hotels like Chalet, East India Hotels, Lemon Tree and Indian Hotels fell 19% quarter-on-quarter but rose 41% year-on-year in the fourth quarter of FY2022. Revenue fell QoQ across the board, while Chalet led the pack with a growth of 51% YoY, followed by Indian Hotels /EIH (42%/40%).

On an aggregate basis, EBITDA fell 52% QoQ across players in the fourth quarter FY22, but rose 2.7x year-on-year. Adjusted net profit of the hospitality basket stood at 162 million in the fourth quarter versus 1,178 million in the third quarter of FY 2022 and a loss of 1,838m in 4Q FY 2021.

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