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The Crisil report reviewed performance in December 2009

India's hospitality sector is improving, at least in the metros according to the latest Crisil Research report on December '09's performance.

"With the exception of Chennai, RevPAR improved across all destinations as compared to extremely low RevPAR witness in December 2008 post the Mumbai terror attacks," the report's three authors - Aatam Chaudhary, Karishma Shetty and Sridhar Chandrasekhar - wrote.

The average RevPAR for six cities - Mumbai, Delhi, Bengaluru, Pune, Kolkata and Goa - increase by 9.6% from Rs5,000 in December '08 to Rs5,500 in the same month this year. However, last year's results were slighted skewed due to the terror attacks.

While RevPAR was up, ARR did not fare too well. ARR edged lower by 17.5% YoY to Rs9,000 in December '09 where as occupancy increased sharply from 46% to 61%.

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Hyderabad registered the best relative improvement in RevPAR amongst its Indian peers. Its RevPAR 40% increased YoY to Rs4,400 in December '09. The city also welcomed an increase in occupancy from 43% to 67% over the corresponding period till December '09.

Crisil also reported Chennai's lowest occupancy growth which climbed by only 4% Y0Y to 55% in the reprot's timeframe.

Among the other lows were Pune, Delhi and Chennai, the former has the steepest decline in ARR, falling by 23.1% YoY to Rs6000. ARR of the other two fell 19.4% and 21.5% YoY to Rs9,000 and Rs6,700 respectively.

On the bright side, RevPAR in Kolkata and Mumbai showed a marked improvement, increasing 24% and 21% t oRs4,400 and Rs4,300 respectively.

The other silver lining was the tourist arrival index which increased 23.76% for the report's month.