Hotel Trends
Published
4/10/2022

Mumbai’s Hotel Industry After The Pandemic. What’s Next?

2 Minutes

Ciboni Vaz
Published
4/10/2022
Hotel Trends

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COVID-19 saw the downfall of countless businesses across the country. One of them… Mumbai’s Hotel Industry. With new variants of the virus appearing out of nowhere, there’s in the bustling city of Mumbai and a section of the Twittersphere that we could be under restrictions soon. But again, time will tell!

But how exactly did Mumbai’s Hospitality Industry do during COVID-19?

The last couple of years were absolutely turbulent for the city’s ever thriving hospitality business. From businesses being put to a standstill to some even shutting down, The effect of it was quite catastrophic! While the sector was trying to actively recover from the first wave, the second wave managed to put a deep dent in the business.

Although, since the start of September 2021, the hotel industry has seen a gradual rise in the generation of revenue. Cause? Well, this recovery was largely driven by leisure travel. The rise in leisure travel growth was largely fueled by the drastic change in travel habits. The new work-from-home culture, the short 4–7 hour drive trips to certain spots, workcations etc, have contributed to the hotel industry’s rescue operation.

Let’s discuss further the pandemic’s damage to the hotels of Mumbai.


There are around 300 hotels of different classes in Mumbai. Most hotels (22.3%) are luxury hotels, followed by mid-to-high-end hotels at 20.25%. The Renaissance Mumbai Convention Center Hotel is the largest hotel in Mumbai with 600 rooms, followed by the JW Marriott Mumbai Sahar with 585 rooms.

Before the pandemic hit the country, hotels in Mumbai averaged around 77% occupancy in the year2019. which was recorded as the highest annual level on paper until 2013. Over the past five years, there has been a steady increase in 1% to 2% of the occupancy for the whole year. . However, Mumbai hotels lost their hands on the business share in 2020 and 2021.

Due to the pandemic, Mumbai’s hotel occupancy rate hit a low of 14.5% in April 2020. Occupancy has since been on a climb and reached the highest pandemic level so far in February 2021, at 56.8%. It has fallen again since February, to 37.2% in April. Revenue per available room, a key performance index, also hit an all-time low for 2020 as a whole, at 2,617.

With possibly another dark cloud looming over, how will Mumbai’s Hotel Industry prepare themselves and fair during these times?

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