hvs anarock: Over 60% GMs preparing to reopen hotels as soon as lockdown is lifted: HVS Anarock survey

New Delhi: Over 60% general managers across hotel chains are preparing to reopen their hotels in anticipation of the lockdown getting lifted this month and most expect demand to pick up by quarter four of 2020, as per the general manager’s sentiment survey conducted by hospitality consultancy HVS Anarock.

HVS Anarock said its anonymous online survey captured responses of 160 general managers across branded hotels pan India covering details like type of property, hotel positioning, probable reopening time frame, expected occupancy by quarter four of 2020, and expected discount in average daily rate in 2020.

As per the survey, the general managers feel upscale business properties are expected to open sooner than others.

Business hotels are likely to see a quicker recovery than leisure with those reopening in May being more confident of occupancy reaching 50% or higher in quarter four.

According to the survey, occupancies are likely to range between 40% to 50% in quarter four of 2020. 33% of business economy and midscale hotels are expected to exceed 50% occupancy, while 50% of leisure upper upscale and luxury hotels expect to achieve occupancy of around 50% or higher.

HVS Anarock stated even with such a drastic fall in occupancy, most general managers do not plan to discount their rates by more than 20%.

Overall, leisure hotels will have lower discounting of rates than business hotels, while higher discounting levels are expected in economy and mid scale hotels. Upper upscale and luxury hotels will discount the least.

Leisure hotels reopening after July are expected to discount the least, while business hotels reopening after July will discount more.