Demands for hotel rooms to go up: KF

Nearly 9,000 rooms across upscale,midscale and economy segments are expected in the NCR region.

Knight Frank India Pvt Ltd,the leading independent global property consultancy,today announced the release of their research study on Indias hotel market.

The report provides an extensive scenario of the hotel market projecting the demand and supply dynamics during 2010-13,of 10 major cities including NCR.

The study also assessed performance of the existing hotels in terms of ARRs,occupancy rates and other operational characteristics and analysed the present market condition regarding hotel development.

The study encompasses ten key cities in the hospitality industry NCR,Mumbai,Bengaluru,Goa,Pune,Jaipur,Hyderabad,Chennai,Kolkata and Ahmedabad

Shreenath Shastry,national director of hospitality agency,Knight Frank India said,Our study identifies a citys growth corridors with maximum upcoming hotel developments and determines the impact of the demand supply implications on the same.

Our research findings indicate that in the NCR the current total stock of room inventory is about 11,077 rooms across upscale,midscale and economy segments; out of which 71 is in the upscale segment followed by 24 in midscale segment. By the end of 2013,the NCR hospitality sector is expected to witness a fresh supply of 8727 rooms with 4659 rooms being added up in Delhi. he said.

In order to gauge the dynamics of hospitality industry,Knight Frank research segmented the hotels in three broad categories upscale,midscale and economy and a sample of 250 hotels across ten cities was surveyed in these categories. This helped them track the historical trends of ARR and occupancy rates from 2005 to Q2 2010.

Story continues below this ad

The research also indicated that in the NCR the share of corporate travellers in hotel occupancy is in the range of 44-53 across the upscale,midscale and economy segments. The share of domestic and foreign tourists in hotel occupancy across all segments has been observed as 48 and 52 respectively. USA and UK contribute the most to rooms occupied by foreign guests.

Among the 10 cities,NCR comprise the largest share of demand and supply followed by Mumbai,Bengaluru and Hyderabad. Strong growth in demand,higher occupancy level,increasing ARRs and low incremental supply are some of the factors for Mumbai and Goa to outperform other cities.