Five-star hotels record 61pc average occupancy in 2014

Five-star hotels record 61pc average occupancy in 2014

Jul 11, 2015-

Five-star hotels recorded an average occupancy of 61 percent last year, up from 58.85 percent in the previous year.

According to Tourism Ministry statistics, out of 523,453 room nights produced by the luxury hotels, 319,284 were sold. There are 10 five-star properties in Nepal, eight in Kathmandu and two in Pokhara.

Despite the growth in room occupancy last year, the hotels are likely to see a sharp fall in occupancy this year due to the earthquake that saw mass departure of tourists.

Cancellations of advance bookings following the April 25 disaster flooded in and tourist numbers plunged 90 percent during the period between May and July, according to official data. “As the country is likely to lose 40 percent tourists this year, it will affect hotel occupancy to a large extent,” said Sharad Sharma, chief statistician at the ministry.

In the hospitality sector, an occupancy rate of above 40 percent is considered “survival”, and a rate higher than 50 percent is termed “fair”. A rate of above 60 percent is “good” and 70 percent and higher is “excellent”.

The government statistics show the hotels recorded the highest occupancy rates of 86.33 percent and 73.02 percent in November and October, respectively, last year—the peak tourist season.

Five-star hotels produced a combined 44,454 room nights in October. Among them, 32,459 were sold. The hotels produced 43,020 room nights in November, out of which 37,138 were sold.

After October and November, hotels were busy during March and April, recording an average occupancy of 72.77 percent and 70.62 percent, respectively. The lowest occupancy was recorded in January (49.78 percent), June (49.21 percent) and July (49.74 percent).

Meanwhile, the ministry said three four-star hotels recorded an average occupancy of 71.54 percent last year. These hotels—two in Kathmandu and one in Lalitpur—produced 112,950 room nights, out of which, 80,804 were sold.

Four-star occupancy has not gone down below 55 percent in any month throughout the year. The highest occupancy was recorded in November (86.84 percent) |and the lowest in January (55.03 percent).  

However, occupancy of three-star properties remained very poor. On an average, 21 three-star properties recorded 55.70 percent occupancy last year.

Out of 372,177 room nights produced, only 207,296 were sold. There are 14 three-star hotels in Kathmandu, two in Rupendehi and one each in Lalitpur, Bhaktapur, Banke, Parsa and Kaski.

Two-star properties saw the highest occupancy among all star category hotels. The ministry statistics show average occupancy of 20 two-star hotels saw 78.22 percent occupancy throughout the year. These hotels produced 18,068 room nights last year, of which 12,779 were sold.

Interestingly, the demand outstripped supply in November. The government’s data show two-star occupancy stood 100.06 percent in November. The lowest occupancy was 66.20 percent in July.

Hoteliers said two-star properties make a good budget option for travellers and rooms price ranges from $10 to $30 per night. There are 12 two-star hotels in Kathmandu, three each in Parsa and Kaski and one each in Lalitpur and Bhaktapur.

However, one-star hotels had the lowest occupancy. The ministry said average occupancy of one-star properties stood at 42.02 percent last year.

These hotels produced 360,093 room nights, among them only 151,303 were sold. There are 33 one-star properties across the country—13 in Kathmandu, 6 in Banke, 4 in Rupendehi, 2 each in Parsa, Jhapa and Chitwan and 1 each in Bhaktapur, Kailali, Kanchanpur and Kaski.

Published: 12-07-2015 08:24

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