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Tuesday, 30 March 2021

Hotel investment volume in 2020 witnessed a 60%

Key Highlights:

India hotel investment trading volume declined 84% in 2020 as compared to the peak witnessed in 2019
India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approx. 55% over the previous year, closing at a RevPAR of INR 1,675
Whilst performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020
Hotel investment volume in India reached a record high in 2019 registering investment sales of USD 762 million

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019: JLL

India hotel investment trading volume declined 84% in 2020 as compared to the peak witnessed in 2019

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019 and in India, the decline in hotel investment trade was even sharper at 84% in 2020 as compared to 2019 according to JLL. Previous years had seen promising and consistent growth in occupancy and average daily rate (ADR) levels across key cities world over. India was no different.

India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approx. 55% over the previous year, closing at a RevPAR of INR 1,675. Whilst performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020.

As a result of the pandemic, hotels were compelled to reset their business plans. Standard operating procedures were drastically transformed with adaptation of available technology to encourage social distancing and increased focus on health safety and hygiene practices. New hotel developments slowed down, and most hotel openings were deferred by at least six months, according to JLL.

According to the STR data, Delhi’s hotel market witnessed a 32% PP* decline in occupancy and a 24.1% decline in Average Daily Rate (ADR), resulting in a 57.3% decline in RevPAR, in 2020 over 2019. Additionally, Bangalore’s hospitality market witnessed a 39-pp decline in occupancy and a 23.1% decline in ADR, resulting in a 67.7% decline in RevPAR, as compared to 2019.

Brand signings in the country decreased by 38% over last year with 125 hotels and over 12,000 keys. The year saw a revival of demand firstly in the leisure destinations, with the maximum volume of signings in Tier-III cities

India has a strong market for robust domestic tourism

The tourism industry appears to have taken the hardest hit across the globe of all the affected industries in the Covid-19 pandemic. In wealthy economies and in certain countries with tourism reliant economies, it was observed that strong direct government support that aided hotel and restaurant industry and workforce.

“The post-pandemic world is bound to see more changes. Realignment of source markets, guest preferences, physical space planning will all be more dynamic and will be discussed more often in board rooms and team meetings. Capital assistance has emerged as the focal point and will remain the need of the hour to help hotels sustain till demand picks up.” says Jaideep Dang, Managing Director, Hotels & Hospitality Group, JLL India.

One in almost every five hotels signed in 2020 was a converted hotel: In India, hotel conversions had seen a consistent increase, nearly doubling from 33 conversions in 2016 to 65 in 2019. However, the conversions plummeted to just 29 hotels in 2020 under the impact of the COVID-19 pandemic. International hotel chains came at par with domestic chains in terms of converted hotel rooms, stacking at 50:50, showing increased flexibility to sign smaller sized hotels. There were no portfolio conversion deals concluded in the year. The erratic uncertainty in the market made the existing or committed hotel owners to adopt a further cautious approach than take any conclusive investment decisions in the year. With the gradual return in demand over the year or so, the hotel signings are expected to bounce back with some portfolio conversion deals as well.

Traction spreads to Tier II and Tier III cities: In line with a growing trend over the previous years, tier-III cities have seen the maximum number of brand signings. The average keys signed per hotel are 137, 97 and 79 in tier I, II and III cities respectively. In terms of the geographical preference in the 2020 signings among the domestic and the international operators, the ratio is 48:52, 43:57, 61:39 inventory volume-wise.

Hotel Investment Outlook

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019 due to the Covid-19 pandemic. The near zero cash flow environment made asset valuations very challenging also resulting in difficulty of obtaining debt financing. As a result, acquisitions were largely on hold in 2020. Hotel investment volume in India reached a record high in 2019 registering investment sales of USD 762 million.

Hotel Investment Sales Volumes in India

*Exchange rate – INR to USD estimated 2020

Source: JLL

Investment activity has been on a pause since March 2020 post the nationwide lockdown. As the country gradually opened up with the unlock measures in phases since June 2020, the sentiment for evaluating hotel assets gained a little traction. The preference for assets in leisure markets increased given the strong recovery of leisure travel across the country since the third quarter of 2020. Investors were also keen on evaluating distressed opportunities in key markets, given last years' decline in corporate travel and its slow and steady recovery has impacted operational cash flows.

2021: Opportunistic optimism

Given the month on month increase in hotel room demand, there are emerging signs of investors evaluating hotel assets in the country, however valuations are at a discount to pre-Covid levels keeping in mind a slower demand and rate revival, especially for cities that are dependent on corporate and MICE segment and reduced profitability levels for the next 2-3 years. Investors are mostly inclined to evaluate operational assets in key markets rather than greenfield or brownfield developments.

A few developers with strong balance sheets are also actively evaluating hotel deals. This trend has also been witnessed on a global level, where private equity firms and institutional investors have large pools of opportunistic capital to deploy for funding or acquiring quality assets in major cities which may become available for the reasons highlighted earlier.

Looking ahead

Looking ahead in 2021, we expect that the current COVID-19 pandemic will continue to have some impact on both commercial and leisure hotel markets across the country, however we expect leisure markets will lead the overall recovery with pent up domestic demand. Business travel which has always formed the lion’s share of the market will continue to see a rather muted recovery.

Saturday, 4 January 2020

Director Jameel reveals STR’s pilot characters

Director Jameel reveals STR’s pilot characters in Hansika Motwani’s “Maha”

STR fans have a groovy reason to celebrate now as their matinee-idol has left them awe-stricken with his dashing look in Hansika Motwani’s female-centric film ‘Maha’. Moreover, the film’s director, Jameel revealing the characterization of STR in the film has furthermore intensified the magnitude of excitements.

Delineating about STR’s role, he says, “There have been lots of buzzes citing that STR will be seen in a cameo appearance, which is untrue. The fact is that he has a screen time of nearly 45 minutes and will be seen in the flashback portions. He will be essaying the role of a pilot and his role is based on the real life incidents that happened to a pilot in Goa before 30 years. We have fine-tuned the role with some fictional touch and his portions will be more gripping.”

On clarifying about STR’s role being named as Jameel, the director jokingly opines, “Please don’t take it this way that I wanted to publicize my name. Initially, we had the name Shoib finalized. However, our team felt that it’s a common name and we finally zeroed in this name.”

Sharing his working experience with STR, Jameel says, “I have never come across such a perfectionist like him. Being a reigning star, he never hesitated to ask if the shot was okay and was ready to go for one more take. He would be an early bird to the shooting spot and would remain and calm and patient even if we delayed to wrap up the day’s shoot. By the end of day, he would ask us on what time he should be there for shooting and was completely punctual. His presence is definitely going to be a tremendous booster for our film.”

Tuesday, 28 May 2019

STR’s non-stop shoot for Hansika Motwani starrer ‘Maha’

The shooting schedules of Hansika Motwani starrer ‘Maha’ has been happening on full swing as planned on its pre-production phase. Despites the challenges involved, the team is proficient enough to proceed perfectly on its course of action. Currently, the entire team is shooting across the sun baked coastal paradise of Goa. Of course, the social media pages are flooded with surprisal enthrallments to see STR’s presence in the project. More than all, it’s producer Mathiyalagan of Etcetera Entertainment, who is pretty much exhilarated about his incredulously joyful experience of working with him.

He says, “As planned for a 8-day schedule, we are now on the third day shooting continuously in Goa. It’s quite hectic as we have to shoot across 5 different locations every day. This schedule has episodes involving STR and Hansika Motwani that includes a song, action block, romantic episodes, party, break up and patch up sequences to be shot. While the progress of shoot is offering me a strong lease of satisfaction, what’s exciting me are the moments with STR, which are completely in contrast to hearsays from certain people that he would pose as burden to producers. Right from Day 1, I am relishing each and every gesture of his. We couldn’t manage to get a proper caravan and were so much doubtful if STR would create an issue. To our surprise, he just said, “Sir, this isn’t going to come onscreen, right. Let us focus on what’s going to be filmed.” We had to continuously shoot from 12 p.m. to 12.30 a.m. Despites the late pack up, he came up with an aplomb attitude and asked what time he should be for the shoot. Getting such an actor is a big boon to budding producers like us. As we were trying to commute caravan from Mumbai to Goa, he just told us not to worry and took rest inside the Innova car until the preparations on the sets were done. Moreover, he used to voluntarily come out and check if everything is fine and his childlike curiosity of asking if the shot is okay left us awestruck. My humble request to all producers is that just come and travel with him. He isn’t asking you to be there on the sets all the time, but just understand his requirements and he’s yours. Despites the unbearable heat and terrible sweating, he is travelling all over the places for the shoot. On her part, Hansika Motwani is doing a great job and is totally cooperative. Their chemistry is working out perfectly. Director Jameel is excellent with his directorial skills and is handling every pressure and challenges with coolness and so is cinematographer Lakshman. The entire team comprising of young people are spreading positive and energetic vibes completely.”

Soon after completing this schedule, the entire team will fly back to Chennai. ‘Maha’ is produced by V. Mathiyalagan for Etcetera Entertainment. The technical team includes Ghibran (Music), J. Laxman (DOP), J.R. John Abraham (Editor), Manimozhian Ramadurai (Art Director), Karky (Lyricist), Sheriff-Poppy (Choreographer), Reshma Sancheti-Archana Mehta (Costumes).

Friday, 26 October 2018

YOGI BABU plays a cameo role

YOGI BABU PLAYS A CAMEO ROLE IN

JYOTIKA’S KAATRIN MOZHI

Lots of cute surprises are endued from the team ‘Kaatrin Mozhi’, which are gaining its attractions gradually day by day. With lots of big names involved in the film including the special cameo of STR, which is going to be one of the greatest highlights. The latest one is Yogi Babu the current comedy sensation did a special cameo appearance in Kaatrin Mozhi. The shoot took place recently and he acted for a day along with Jyotika mam. His two scenes with Jyotika mam is going to be hilarious and quite fun.

There are many callers to Jyotika mam as a RJ and one such caller is Yogi Babu, who calls her and talks about his love. How Jo mam resolves his love issues are the two scenes in the film.

Kaatrin Mozhi is produced by G Dhananjayan, S Vikram Kumar and Lalitha Dhananjayan of BOFTA Mediaworks India Pvt. Ltd. The star-cast comprises of Vidaarth, Lakshmi Manchu, M.S. Bhaskar, Manobala, Kumaravel, Mohan Raman, Uma Padmanabhan, Seema Taneja and Sindhu.

The technical crew comprises of A.H. Kaashif (nephew of A.R. Rahman) composing music, whose couple of single tracks have already enchanted us. Mahesh Muthuswami is handling cinematography with Kadhir on art department. Poornima has worked on costumes with Praveen KL taking care of editing. Pon Parthiban has penned the dialogues for this film, which is directed by Radha Mohan.