ITC Grand Chola, a premium luxury hotel in Chennai, reported an occupancy rate of 75 per cent recently, almost 15 per cent higher compared with last year. Anil Chadha, Area Manager South, ITC Hotels and General Manager ITC Grand Chola, said: “We have been seeing a rise in the number of business travellers to the city starting April.”
Sashi Kumar U, Senior General Manager, Radisson Blu GRT, said the hotel occupancy has remained constant at 77 per cent for the past six months, an increase in five per cent compared to the previous year. “Even in April and May this year, which are considered offseason, the occupancy rate was better compared to 2014,” he added. Occupancy by tourists has significantly increased as well. “Our bookings look good from September to February, when most tourists travel to India,” he said.
According to a recent EY 2015 report on the global hospitality sector, India’s capital flows and tourist arrivals increased as a number of industry players reentered the market. An ICRA report says that revenue from the hospitality sector is expected to grow 9-11 per cent in 2015-16 with a rise in the occupancy rate.
R Rangachari, Advisor, South Indian Hotels and Restaurants Association (SIHRA), said the average room occupancy rate has risen to 65 per cent from 55 per last year. “After the global economic slowdown, the market is improving and there is increase in business activities around Chennai, which will improve the market,” he said.
Another official from SIHRA said the business is showing good signs of recovery even without considering the high occupancy levels associated with the Global Investor Meet (a two-day event to attract investors to the State) and the conventions that happened in August preceding the meet.
(Source: The Hindu Business Line)