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Gurgaon Emerges as a RevPAR Leader in India's Luxury Hotel Segment

2012 RevPar Posted 22% and 27% Higher than the Five Star
Segments in Mumbai and Bangalore Respectively

February 25, 2013 - Gurgaon, New Delhi’s flourishing satellite city, is today one of the country’s most promising hospitality markets. Currently, Gurgaon’s existing branded inventory stands at above 4,000 rooms, with a planned pipeline of over 4,500 rooms. Of these, over 50 percent are mid-scale and budget supply. Virtually all domestic and international hotel operators aspire for representation in Gurgaon, if they are not already present.

Backed by a strong corporate and industrial base, the Gurgaon hospitality market has consistently demonstrated strong performance. It has gradually emerged as an independent micro-market from New Delhi. As per STR Global, the Gurgaon hotel market has emerged as a RevPAR (revenue per available room) leader in the five star segment of India for 2012.

Gurgaon posted a RevPAR of INR 7,200, which is 22 percent and 27 percent higher than the five star segments in Mumbai and Bangalore respectively. It is one of the few hotel markets in the country that did not see a dramatic performance decline during the economic downturn.

Gurgaon’s branded four and five star hotels saw significantly increased occupancy levels in 2012, reflecting growing demand levels and resulting in an overall strengthening of RevPAR levels from INR 6,000 in 2011 to INR 6,100 in 2012, as per STR Global. Adding to the room/night business is the strong F&B demand from Gurgaon’s corporate and residential communities.

“We are, for the first time in the Indian hospitality market, starting to witness assets being offered for sale, with a transparent and defined process to sell them,” says Sudeep Jain, executive vice president, Jones Lang LaSalle Hotels & Hospitality Group, India. “Of these assets, Jones Lang LaSalle’s Hotels & Hospitality Group is offering three properties for sale in Gurgaon, each providing a unique opportunity to invest in the Gurgaon hospitality market.”

The three assets, currently in varying stages of completion, include an operational, stabilised five star branded property, an under-construction project and a bare-shell structure with development flexibility, to cater to different investor types.

Gurgaon continues to benefit from investment from the corporate sector with more multinational corporations setting up base in Gurgaon and a presence of over 3.6 million square metres of commercial office stock.

Focused infrastructure development initiatives including development of the Gurgaon Rapid Metro rail and the Southern and Northern Periphery roads, have added to the appeal of the city, positioning Gurgaon as a prime investment opportunity for hotels. Gurgaon’s proximity to the airport is an added advantage, with close to 36 million passengers having used Indira Gandhi International Airport in Delhi, during the financial year 2011-12.

“Looking ahead, we expect that the upcoming supply in the DIAL hospitality district will have minimal impact on the Gurgaon market,”says Sudeep Jain. “A large portion of the corporate sector prefer to work and stay in Gurgaon, as it develops into a separate micro-market.”


Zina Zhang
+65 6494 3648

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