MAJOR Indian cities saw a boost in hotel inventory with the addition of some 5,000 rooms, but room rates have dipped 10 to 20 per cent during the high season between October and March, according to industry sources.
Vivek Nair, president, Federation of Hotels and Restaurant Associations of India, said: “The pressure on room rates is due to the new supply of hotel rooms in many major cities in India.”
Delhi NCR saw a fresh supply of 1,200 rooms, while 800 each were added in Chennai and Mumbai, 1,300 in Bangalore and 750 in Hyderabad in the three-, four- and five-star categories.
Dilip Puri, managing director and vice president South Asia, Starwood Hotels and Resorts, said: “The Indian economy has been through a bad year in 2012, and (as a result) the hotel industry has seen a drop in demand for rooms for both corporate and leisure travellers.”
K B Kachru, president, south Asia operations, Carlson Hotels, said: “In the April-September period, groups rates were down 15 per cent. The huge addition of room supply has brought down rates as demand has not grown at the same pace.”
In just 4Q2012, Chennai has seen the simultaneous opening of two major hotels, the 600-key ITC Grand Chola and the 326-key Leela Palace.
Vjiay Shrikent, general manager, Vivanta by Taj Connemara, Chennai, said: “It will take some time for the hotels in Chennai and elsewhere in the country to achieve equilibrium again, but it’s a matter of time as industrial growth outlook is positive so corporate travel demand will surely rise.”
