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AHMEDABAD.

Ahmedabad
The market achieved an AOR of 73% and ARR of approximately Rs5,400 in 2007 which declined to 60% and Rs5,000 respectively in 2008, and further declined to 59% and Rs4,100 respectively in 2009. Market mix includes 76% business, 12% MICE, and 12% leisure and other demand.
Sanjay Sethi: Space for branded budget hotels.
Keshav Baljee: Very competitive in the three-and-four star category.
Uttam Dave: Hot. We are looking for a site.
Harsh Varma: Cold.
Veer Vijay Singh: not very well aware about the city.
Raj Menon: Strong demand from this market.
Nikhil Manchharam: Saturated.
Vijay Thacker: Go with caution. Lots of new properties, and demand generators have not kept up to the same speed.

Bengaluru
Essentially, business travellers account for 80% of demand, while the MICE and leisure segments account for five per cent and three per cent respectively. The market achieved an AOR of 67% and ARR of approximately Rs8,500 in 2007 which has experienced decline at an AOR of 62% in 2009 with an ARRof Rs 6,600.
Sanjay Sethi: Pretty crowded.
Uttam Dave: Selective opportunities still available in select precincts.
Harsh Varma: Cold.
Keshav Baljee: I believe every chain, whether international or domestic, has planned at least one hotel here. So this city is certainly saturated.
Veer Vijay Singh: Over saturated.
Vijay Thacker: Proceed with caution; very important city in the long term, over supplied in the short term.

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Chandigarh
The current room inventory amounts to approximately 1,780 rooms comprising of budget to upscale products. The market achieved an AOR of 68% and ARR of approximately Rs2,315 in 2007, which has experienced minimal growth at an AOR of 69% and ARR of Rs2,675 in 2009.
Sanjay Sethi: Space for good branded budget hotels.
Keshav Baljee: Strong market for F&B but weaker for rooms. Quite a few hotels under development in the suburbs.
Uttam Dave: Moderate; we are looking for a site.
Harsh Varma: Hot.
Veer Vijay Singh: Over saturated at the moment; lots of hotels coming up.
Raj Menon: Relatively positive demand.
Vijay Thacker: If one has mid-market plans, then yes.

Chennai
The market achieved an AOR of 73% and ARR of approximately Rs4,500 in 2007 which declined to 65% and Rs5,600 respectively in 2008, and 65% and Rs5,800 respectively in 2009. Market mix includes 60% business, 15% MICE, and 25% leisure and other demand.
Sanjay Sethi: Needs more hotels to meet current and future demand
Keshav Baljee: We believe Chennai is heading the same way as Bengaluru and Pune.
Uttam Dave: Downtown, very hot. We are looking for more sites.
Harsh Varma: Hot.
Veer Vijay Singh: Over saturated.
Nikhil Manchharam: Under estimated market.
Vijay Thacker: Caution; 3-4,000 rooms coming up there.

GOA
The market has been historically seasonal, and has been achieving more or less 75% occupancy over the years. Market wide ARR in 2007 was Rs4,850 increasing to Rs5,090 in 2008, and Rs5,120 in 2009. The market mix is 38% international leisure, 39% domestic leisure, 6% MICE and six per cent other demand.
Sanjay Sethi: Good quality four-star hotels are still rare in this market
Keshav Baljee: holds potential, but cannot take very large hotels.
Uttam Dave: We are looking for sites.
Harsh Varma: Hot.
Veer Vijay Singh: Can do with some more hotels; the north doesn’t have land available, but they can come up in the south.
Raj Menon: It remains relatively stable; it’s India’s only beach playground.
Vijay Thacker: Always a good market if you get a good site.

Hyderabad
About 85% of the demand is corporate in nature, of which around 10% is the extended stay segment. MICE accounts for roughly 12%. The Hyderabad hotel market achieved an ARR of Rs4,460 in 2007. Contrary to the decline in AOR, the ARR showed an increase to Rs4,790 in 2008 but registered a decline in 2009 to Rs4,300.
Sanjay Sethi: definite need for branded budget hotels in central Hyderabad.
Keshav Baljee: With the Telangana issue rearing its head, we believe some of the IT office space may be diverted into other cities which does not bode well for Hyderabad. However, the infrastructure, the existing stock of top-quality IT buildings and great airport, make this a city for the future.
Uttam Dave: Selective opportunities still available in select precincts.
Harsh Varma: Cold.
Veer Vijay Singh: will have a huge number of hotels; over saturated.
Raj Menon: Short-to-medium-term is over supplied for sure.
Nikhil Manchharam: Borderline saturation.
Vijay Thacker: Can’t say anything at this point; I don’t know what the politics will do to that city.

Indore
The market achieved an AOR of 62% and ARR of approximately Rs 1,910 in 2007 which increased to 63% and Rs 2,300 respectively in 2008, and further increased to 70% and Rs2,490 respectively in 2009. The market mix includes 70% business, 15% MICE, and 15% leisure and other demand
Sanjay Sethi: No views
Keshav Baljee: Too little business, too many hotels.
Uttam Dave: Good opportunity but rates too low and competition too high; does not allow business models to work.
Harsh Varma: Unsure.
Raj Menon: Don’t know enough about the city to comment.
Vijay Thacker: Mid-priced or thereabouts is okay.