Asia -  Gurgaon, India

Gurgaon, close to the Indian capital, is one of India’s strongest commercial markets with the city witnessing double-digit year-on-year growth over the last few years. In spite of regular supply increases not only within Gurgaon but also nearby areas like Delhi Aerocity, occupancies have continued to shown steady growth each year. ADRs witnessed some correction in 2014, however, bounced back in 2015 and the trend is likely to continue going forward as well. Hotel values however, have seen an annual year-on-year drop; -11% in 2014 and -6% in 2015. Primary reasons may be attributed to lower contributions to hotel revenues from Food and Beverage with the influx of several standalone setups in the city and diminishing operating margins with increase in utility costs over the last two years. However, hotel values are likely to improve over the mid-term as RevPAR is forecasted to witness moderate to healthy growth in the next couple of years due to the significant slowdown in the pace of supply while demand continues to be robust.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Gurgaon RevPAR Change

Gurgaon RevPAR

Year RevPAR
2013 71.68
2014 66.27
2015 68.99
2016 75.34
2017 (f) 85.10
2018 (f) 98.57

For more information, please contact:

Achin Khanna, MRICS
akhanna@hvs.com
  • +91 124 4616000 (w)
Pooja Goel
pgoel@hvs.com
  • +91 124 4616000 (w)