Bangalore in Want of 6,000 More Hotel Rooms

April 17, 2007	(Be the first to rate this story!)  Loading ...
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Bangalore, the garden city of the country, has attracted a large number of business travelers in the past few years. But, the hotel and hospitality industry here has yet to catch up with this growth, a fact clearly evident by the shortage of hotel rooms and service apartments in the city.

Also known as IT hub of India, Bangalore is all prepared to add 3,000 more rooms over the next five years. At present, there are over 2,500 hotel rooms in the premium category and around 300 recognized service apartments in Bangalore. The figures do not appear to stay in step with the current demand and also leading to an increase in hotel room rates in the city.

The average prices for premium category hotels in Bangalore have witnessed a hike of 18.5% and the prices have reached from Rs 11,280 to Rs 13,366 in a mere ninth month period i.e. April to December 2006.

With the development of the new international airport, a number of hotel chains have forayed into the city. The list includes the renowned names such as Radisson, Hilton, and JW Marriott.

Whether talk about business travelers or leisure travelers in the city, they prefer to go with budget segment than the premium segment. A change of preference is highly due to the rise in hotel rates in Bangalore.

A 66 per cent of the net revenue generated in hotels comes from the premium category whereas the food and beverages segment contributes to 22 per cent.

Since Bangalore is not seen as a leisure destination at present, the contribution of the MICE (meetings, incentive, conferences and exhibition) segment is not very significant. It accounts for around 10 per cent of the total revenue.

Currently, Bangalore is serving as a business destination; there is a significant contribution from MICE (meetings, incentive, conferences, and exhibition) segment. However, the fresh gusher of demand for hotel rooms in Bangalore is further fuelled by the increasing commercial activity and strengthening medical tourism.

News Published Under:   Bangalore |