OTHERS
| Hotel occupancy down in metros due to slowdown: C&W Fri, 21 Sep 2012 00:51:32 +0530 |
| Business Standard Economy Policy News Slowdown in global economies leading to corporates curtailing travel has brought down the average room occupancy in top six cities including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata. According to a research report released on Thursday by real estate consultancy firm Cushman & Wakefield (C&W), first half of calendar year 2012 (H1 2012) saw average occupancy (AOR) at 58 per cent and average room rate (ARR) at Rs 5,400 in the top six cities. Both the AOR and ARR were down by four and five per cent over previous year 2011. "A moderate slowdown in global economies led many corporations to curtail travel, while individual travelers have also been cautious due to fiscal uncertainties. A corresponding decline in ARR was noticed as hotel’s tried to ensure occupancy even at a moderately lower cost. Healthy competition in many of the cities is leading hotels to create monetarily attractive packages for potential visitors," the report stated. Among these cities, Chennai recorded the highest AOR of 64 per cent for H1 2012, followed by Mumbai (61) and Kolkata (60), wherein Mumbai and Kolkata saw the maximum dip in AOR. In H1, 2012 Mumbai, recorded the highest ARR of Rs 6,400, followed by NCR Rs 6,280 and Bengaluru Rs 4,915 . While Chennai and Hyderabad witnessed marginal increase in ARR, all other cities saw the rates as wither stable or softening over 2011. However, C&W estimates more supply of rooms to be added in the coming years in these six major cities. As per the report, the top six cities of India are expected to see a total of 50,000 new hotel rooms across categories in the next 5- 6 years. "This is in response to the steady growth the hospitality sector has recorded over the last few years. 2012 alone is expected to see 14,800 fresh keys by the end of the year. Out of the total expected supply for 2012, 2000 new hotel rooms have already entered the market," the report further stated. NCR, with a total room supply of 17,500 rooms, is expected to see the highest fresh hotel room supply in the next five years, followed by Mumbai (10,200) and Bangalore (9,400), wherein the addition will be concentrated in potential growth areas namely, airports, commercial growth corridors, industrial corridors and SEZs. The micro markets emerged as a result of business centers that were created in these cities due to growth in IT/ITeS , trade and commerce. |
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