Friday, August 25, 2006

BANGALORE banking on hotel boom


Bangalore: It's been called the city of pubs, the Garden City and more recently, India's Silicon Valley. Now Bangalore is ready for another flattering title of the fast-emerging, up and coming hospitality hub.

In the next three years, the city will be ready to play a rich host to its ever-increasing number of tourists with 35 new hotels and 8,000 additional rooms.

The mammoth task would mean an investment of Rs 3,000 crore.

"I think the demand is there and provided that the demand outstrips supply, there will be that inequity between rooms for guests and corporates who are flying in," General Manager Leela Palace Hotel, Rudy Oretti says.

The ITC Group is building a 230-room luxury hotel and plans another one. The Taj Group and Bharat Hotels are finalising projects, and the Leela Palace and Resorts is adding 105 rooms to its property.

Global chains such as JW Marriott, Hilton and Radisson are also said to be eyeing Bangalore.

Most of the new hotels are expected to be ready by 2008 which is when the new international airport will also start functioning.

A report by global property consultant DTZ says that in three years, the luxury segment will grow by 3,500 rooms with investment of Rs 1,500 crore.

The up-market segment will get 2,400 more rooms and the mid-market segment will have 1,800 additional rooms. The budget and economy segment will grow by 500 rooms.

Even with the new projects experts anticipate a shortfall of a few thousnd rooms, Bangalore’s appetite for more and luxurious does not look like it’s easy to satiate.

courtesy:-CNN IBN

3 comments:

Ankush said...

Let me guess - the hotel industry is probably growing because of the booming IT.
my guess partII - the hotel industry will be much like a one night stand without the government taking interest in building roads and highways.

Rish said...

ha ha guess u from bangalore very true roads are in pathatic condition

Martin said...

The real estate is one sector that features as one of the most badly hit sectors following the global economic meltdown. Especially in developing countries like India, where real estate was going great guns, so to say, faced a steep downfall following the recession and inflation. Especially in the metros and the developing cities like Bangalore, real estate suffered dearly as the demand for the residential units, though increasing became a pent up demand. The badly hit economy particularly the IT sector that has a strong foothold in Bangalore, and the high rates of interest in home loans made the demand for residential units go down or at best become a pent up demand. It is believed that once the situation stabilizes the demands would start surfacing. Another very problematic issue that the real estate dealers are facing is that patrons of the currently booked flats are not willing to pay the original price that they had agreed on but the current price that is less than the original amount owing to the current economic condition. Not only the residential units but the commercial properties like the hotels in Bangalore have also naturally seen a drop in their occupancy. The ITC hotels in Bangalore that registered the highest occupancy, as high as 83%, have been forced to cut down on their tariffs by almost 20% as the occupancy has also gone down by 20%. On the contrary, the business hotels in Bangalore are surviving the tough times as the number of business travelers has not been affected as hard as the umber of leisure hotels. The budget hotels in Bangalore have seen a hike owing to the obvious reasons.

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