Wednesday, August 21, 2024 IHCL hotels in Delhi face high rates as demand exceeds limited supply, leading to a price surge despite slow new property openings. During the first quarter of the financial year 2025, the Indian Hotels Company, supported by the Tata group, witnessed a 2% increase in hotel occupancy rates in the Delhi-NCR area, reaching 82%. Concurrently, the revenue per available room experienced a 10% rise to ₹8,200.
This growth comes amid a nationwide slow pace in new hotel openings and strong domestic demand, factors likely to maintain high room rates in the upcoming travel seasons. Despite the underrepresentation of branded hotel rooms in India, the limited supply is poised to continue. From April to June, the Indian hotel market saw the addition of 2,900 rooms, a 1.
4% increase, bringing the total to 191,000 rooms. The major cities such as Delhi, Mumbai, Bengaluru, and Chennai collectively registered a modest 0.6% rise in room counts.
Yet, challenges like extreme heatwaves and reduced corporate event activities due to the elections led to sluggish growth during this period, as noted by industry professionals and analysts. Nevertheless, expectations are high for recovery in subsequent months, fueled by upcoming busy wedding and corporate event seasons. Hotel industry trends indicate a shift in vacation planning, with the decision-making process for leisure trips now taking as little as 3-5 days, reduced from the previous 3-4 weeks, thanks to extended weekends .