Knight Frank study projects supply-demand mismatch in hotel rooms
16 Dec 2010
Leading independent global property consultancy, Knight Frank India Pvt Ltd, yesterday announced the release of their research study on India's hotel market.
The report provides a detailed picture of the hotel market and contains projections of the demand supply dynamics during 2010-13 of 10 major cities including NCR.
The study also assesses performance of the existing hotels in terms of ARRs, occupancy rates and other operational characteristics and includes an analysis of the present market condition regarding hotel development.
The study covers 10 major cities for the hospitality industry – NCR, Mumbai, Bengaluru, Goa, Pune, Jaipur, Hyderabad, Chennai, Kolkata and Ahmedabad.
Shreenath Shastry, national director of hospitality agency, Knight Frank India said, ''Our study identifies a city's growth corridors with maximum upcoming hotel developments and determines the impact of the demand – supply implications on the same.''
''Our research findings indicate that in the NCR the current total stock of room inventory is about 11,077 rooms across upscale, midscale and economy segments; out of which 71% is in the upscale segment followed by 24% in midscale segment. By the end of 2013, the NCR hospitality sector is expected to witness a fresh supply of 8727 rooms with 4659 rooms being added up in Delhi.'' he said.
The dynamics of the hospitality industry was measured across three broad hotel segments upscale, midscale and economy. A sample comprising 250 hotels across 10 cities was surveyed in the categories which helped Knight Frank track the historical trends of ARR and occupancy rates from 2005 to Q2 2010.