Indian hotel industry continues to grow robustly

Leading hotel consultancy HVS Hospitality Services report Delhi and Mumbai as having the highest room rates in the country at an average of Rs 10,200 per night. Bangalore finally saw a marginal correction in room rates with a room rate of Rs 10,100, marginally lower than Rs 10,545 that it commanded last year.

In terms of occupancy Mumbai performed the best, followed by Delhi and Kolkata. While branded hotels in Mumbai registered an average occupancy of 80%, Delhi was at 78% and Kolkata at 77.4%. "Overall the occupancies in most markets softened while ARRs saw a marginal increase. Going forward, we will see correction in ARRs in next two years. Most of the markets have peaked out in terms of occupancies though revenue wise this was one of the best years for the hospitality industry," says Siddharth Thaker, associate director, HVS Hospitality Services.

Raymond Bickson, MD of the Taj Group of Hotels says, "Across board we registered occupancy of 75%. The RevPar (revenue per room) for this year has been good. ARRs may soften a bit though overall tourism sector looks strong."

Farhat Jamal, COO of the Grand Group of Hotels said , "While Delhi and Mumbai properties performed well, occupancy has decreased for our Bangalore property. The ARR too is not growing. Bangalore will be the focus of our sales and marketing strategy this year and in fact for most hotel chains."