Home / NEWS / Hospitality Trends / NCR: Reaching new heights

Outlook:
It is expected that by hosting a mega event of Common Wealth Games NCR Delhi region would experience a tourism boom which might help it recover from the loss of 2008-09.

Even though the massive demand would result in increased occupancies, hotels might see some gap in realisation of revenues due to the newly proposed policies by the tourism ministry. Allegedly tourists booking through Games Travel Office would be exempted from luxury tax.

Further, with hoteliers being asked to slash down rates by 15% to 50% as per hotel categories, hotel may be experience a further squeeze on their profit margins.

Story continues below

Advertisement

COMMENT Comment on this article

Huge supply in the city is in pipeline for the business hotels and city might need more room nights supply as the commercial sector in the city is expanding exponentially.

However this would primarily be driven by the absorption in commercial sector which is expected to firm up by end of 2010. If huge commercial space in IT/ITES buildings and SEZ takes off in NCR, the region is bound to graduate to a mature market with an array of hotels in demand.

A new concept in the city is of service apartments primarily catering to the long stay demand. With few players active in the region in this segment, but with increasing demand and cost responsiveness, hoteliers and investors are looking at this option as a promising investment.

With revival in corporate activity, business travel is expected to bounce back sooner compared to the leisure travel market which is one reason that hotel construction is being pursued aggressively in the city.

In brief, the prevailing trends highlight the dynamic opportunities of growth in the hotel industry in the city. But with wider choice in the market, fair share of the hotels demand shall certainly get affected, and a much rationale market would lead to sustainable growth of the hospitality sector.