Marketing research

Hotel room market to touch Rs 11,900 cr by 2013: Study

Knight Frank India Pvt Ltd, an independent global property consultancy, estimates Indian hotel room market to touch Rs 11,900 crore by 2013; translating to 17 per cent average annual growth rate for 10 cities. The study released by the consultant — ‘India's Hotel Market', encompasses findings from 10 key cities in the hospitality industry namely NCR, Mumbai, Bangalore, Goa, Pune, Jaipur, Hyderabad, Chennai, Kolkata and Ahmedabad.

Results of the surveyed Indian cities reveal that by 2013, the total demand will be for 43,828 rooms, while the total room supply will be 81,296, said Knight Frank. The per day room demand is estimated to grow at an average annual growth rate of 13.9 per cent for upscale hotels and 9.3 per cent for mid-scale and economy hotels. Among these cities, NCR comprise the largest share of demand and supply followed by Mumbai, Bangalore and Hyderabad, said the study.

However, strong growth in demand, higher occupancy level, increasing average room rates and low incremental supply will enable Mumbai and Goa to outperform other cities.

For the purpose of research, Knight Frank segmented the hotels in three broad categories namely Upscale, Mid-scale and Economy, said a press statement. A sample of 250 hotels across 10 cities was surveyed in these categories, which helped the consultants to track the historical trends of average room rates and occupancy rates from 2005 to the second quarter of 2010, it said.