Third wave of Covid-19 to have benign impact on hotels industry: Ind-Ratings
Third wave of Covid-19 to have benign impact on hotels industry: Ind-Ratings

NEW DELHI: The third wave of Covid-19 is projected to have a positive impact on the hotel business because to fewer limitations and the industry's proactive planning, according to India Ratings & Research (Ind-Ra). The impact throughout the industry will be minimal, according to the ratings agency, because central and state governments would impose less limitations than in the first and second waves.

"Moreover, like with the first two waves, the ebbing of the infection wave begins in metro cities; as a result, the government's minimum limits and people's self-restrictions will begin to merge in a few months." Furthermore, unlike the first two waves, the overall impact will be benign due to the sector's proactive preparedness in terms of cost reducing during the times when instances begin to rise, according to Ind-Ra.

"As observed in the case of significant hotel chains during the first two waves, occupancy rates fell during the quarter in which the cases climbed, but there was an overall rise in occupancy rates once the cases started to withdraw." The recovery of the sector, however, will be more lengthy and patchy than the agency's base case. It had expected near-normal occupancy in FY23, but large cancellations of planned events due to attendance constraints will have an impact on the sector.

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