Industry & Economy
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Hotels
As more hotels come up in Chennai, average room rates may dip
Our Bureau
Chennai, Nov. 19
WITH two more business class hotels, Hotel-Palm Chennai and Traders Hotel, set to open in the city, hoteliers fear that the increase in supply would hit the average room rate (ARR).
The two new hotels between them will bring 400 rooms into the market.
The ARR in the four-star category ranges from Rs 3,500 to Rs 3,800 and about Rs 5,000 in the five-star category.
Chennai has 10 business class hotels — nominated by convention and tour operators as business hotels — which have about 1,500 rooms between them. During the past three months, occupancy rates in the city have gone up, averaging about 75 to 80 per cent. The city hotels had an occupancy rate of about 40 to 45 per cent during the corresponding period in the previous year, industry sources said.
Enthused by the increased occupancy, on October 1, all the hotels in the city increased their room rates by 10 - 15 per cent. The ARR went up to Rs 4,500 in the four-star category, industry sources said. GRT Grand, for instance, increased its tariff from Rs 3,250 for a single occupancy room to Rs 3,750, while The Residency Towers, which is on the same road, increased its tariff by 10 per cent from the earlier Rs 2,500 for single occupancy to Rs 2,750
The Hotel-Palm Chennai, earlier Hotel Sreelekha, is a part of K. Raheja Resorts & Hospitality Services, which owns and manages the Ramada Plaza Grove in Juhu, Mumbai; The Retreat at Madh Island, Mumbai; The Carlton in Kodaikanal; and The Classique Club at Andheri, Mumbai.
This business class hotel with 238 rooms is located on Anna Salai, Chennai's arterial road.
Traders Hotel with 162 rooms is located in the heart of Chennai's business district. It is the business hotel brand of Shangri-La Hotels and Resorts, a chain of deluxe hotels and resorts in the Asia Pacific region.
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