Le Meridien, the InterContinental group and Lemon Tree are keen to come to Hyderabad
As per the study, Hyderabad has overtaken cities like Mumbai, Goa, Chennai, Delhi and Bangalore. Business travel is said to be one of the main drivers of the growth in the hospitality industry.The demand now does not match supply. However, this is expected to change with many Indian and international chains planning to set up shop in the city. The star hotels in the city claim that almost 90% of the guests are business travellers.
The year-on-year occupancy rates, too, have been rising to over 80% in ‘04-05. The Hyderabad International Convention Centre stabilizing as an international centre, and also the growth of the Genome Valley, Hitech City and ICICI Knowledge Park are positive drivers for increased occupancy in the first class business segment. The number of rooms in the city is expected to touch 2,461 by the end of 2006 and go up to 6,507 rooms by 2010. The average room rate currently at Rs 5,000 is expected to go up to Rs 8,000 by 2008-09.
Hyderabad is currently in a very strong position as its average room rates are still very low but its occupancy is high at over 80%. Though the room tariffs are higher in other cities, considering the city’s performance against all other parameters, it is clearly in the number one position. The construction of the Hyderabad international airport is also expected to spur the growth of hotels.
The number of rooms in the city is expected to touch 2,461 by the end of 2006 and go up to 6,507 rooms by 2010.
Currently, the city has approximately five five-star hotels including ITC Kakatiya Sheraton, Taj Krishna, and the Viceroy. Viceroy has chalked out an elaborate expansion plan and will be known as JW Marriott and is also planning to take the number of rooms up from 168 to 300 with an investment of Rs 80 crore. Bangalore-based hotel group Royal Orchid plans to set up a four star hotel in Hyderabad by the end of 2006 and is also mulling the possibility of setting up a five-star hotel in the future. Also, hotel chains like London based Le Meridien, the InterContinental group and Lemon Tree are keen to come to Hyderabad. The ITC group also has plans to build another hotel in the city while Tulip Manohar has tied up with Radisson.
