57% Indian hotels shut as tourism dries up

The coronavirus has put the hospitality sector under huge strain, and India is no exception, with the majority of hotels in the country having shuttered, and the remaining few turned into quarantine centres or workspaces.

In an unprecedented event, some 57 per cent of 787 branded hotels in India have become non-operational as of March 30 this year, according to a report by global consulting firm HVS, which was based on discussions with key industry stakeholders.

Covid-19 has shut 57 per cent of hotels in India; aerial view of Central Delhi in India pictured

The few operating hotels are running around 10 per cent or lower occupancies, said HVS.

However, these hotels are now serving a different clientele – quarantine guests, people stranded by the country’s nationwide lockdown, and business continuity teams.

Some hotels have offered their facilities to people who have arrived in India recently and have to serve a 14-day quarantine. Others are housing foreign and domestic guests, some of whom were long-stayers, who were not able to return home due to the lockdown.

In other instances, hotel rooms have been converted to workspaces for businesses providing essential services. To continue their operations during this period, several organisations have set-up small business continuity teams, which are staying and working from hotel rooms.

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