Majority of hotel operators in India believe that it will take two years for their revenues to return to pre-COVID levels. In a recent survey conducted by real estate consultancy firm, JLL, 60% of them said that the recovery in the hospitality sector will take between 13 to 24 months
The study was conducted on 15 leading hotel operators in India with presence across hotel segments in both business and leisure markets.
The whitepaper titled 'Impact of COVID-19 on Indian Hospitality Industry' was undertaken to understand the impact on development and opening of new hotels, as well as the support required for the sustenance of the hospitality sector.
Qualitatively, the survey also indicated that business travel is expected to reduce in the post COVID-19 world as companies will rationalise spending on travel.
"The standard operating procedures will be significantly transformed to promote enhanced hygiene standards and to adopt technology to support social distancing policies. However, with the slowdown of hotel developments, capital assistance is needed to help hotels sustain until demand returns," says Jaideep Dang, Managing, Director, Hotels & Hospitality Group (India), JLL.
The report highlighted that 47% of the operators expect to re-open their hotels for operation within 2 weeks of lifting of lockdown restrictions by respective state governments. While 33% of them expect to open within a week.
It underscored that "almost all operators believe that most hotels in their portfolio would need working capital infusion to continue or re-start their operations because the reserves have almost dried".
Meanwhile, 67% of the operators surveyed confirmed that they are being approached by the hotel owners for financial assistance or relief, for example, deferring management fees, fixed system charges, etc.