‘Top 6 Indian cities to see 50,000 new hotel rooms in 6 yrs’
By ENS Economic Bureau - HYDERABAD
21st September 2012 10:05 AM
The top six cities in India are expected to witness an addition of 50,000 new hotel rooms over the next five to six years, according to a joint report by trade body CII and realty consultancy firm Cushman & Wakefield (C&W).
Titled ‘Indian Hospitality Story 2012 & Beyond,’ the report noted that nearly 15,000 rooms will be added in 2012 alone, underscoring the steady growth the hospitality sector is registering. Of the top six cities namely Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai, Delhi is expected to have the highest additions (17,550), followed by Mumbai (10,200) and Bengaluru (9,400).
“The demand has been strong from both foreign as well as domestic tourists. With the support and initiatives by the governments at various levels, the hospitality sector is moving towards comprehensive growth,” said Akshay Kulkarni, Regional Director, Hospitality, South & South East Asia, C&W.
The addition of new inventory will be concentrated near potential growth areas such as airports, commercial growth corridors, industrial corridors and SEZs.
It is estimated that the cities’ average occupancy rate (AOR), witnessed a marginal decline of 4 per cent and a 5 per cent reduction in average room rate (ARR) over the last year. Metros like Mumbai and Kolkata witnessed a sharp dip in AOR.
According to the report, the decline in AOR in popular destinations was primarily due to addition of supply in major cities coupled with a moderate slowdown in global economies.
“Occupancy rates may see an upward trend in the second half of 2012 keeping ARRs steady. However, since there is a substantial supply that is expected over the next few years, the pressure on occupancy rate and ARRs will continue,” said Kulkarni.
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