To meet demand, city to add 4,900 more hotel rooms

Chennai:The citys star hotel landscape is set for an expansion in 12 to 18 months with 4,945 additional rooms expected to come up. About 15 new hotels of all types five-star deluxe, five-star , four-star , threestar and economy class are being built.

In the last year, according to a FICCI-Evalueserve report, the number of rooms increased by about 17% and the luxury segment grew by 36.7%. The growth in the city (industrial) will justify this demand. Otherwise the situation will become like that in Hyderabad or Bangalore where there was a shortage of rooms and the existing hotels hiked the rates, said South Indian Hotels and Restaurants

Association (SIHRA) honorary secretary T Nataraajan. He added that if Chennai did not facilitate this increase in hotel rooms it would become an expensive destination for travellers. The supply will create its own demand because eventually the city will attract international conventions, said Dr Palani G Periasamy, chairman of the Appu Group of Hotels which manages Le Meridien in Chennai.

Sources say MRC Nagar will soon have the 450-room Leela Kempinski and the 350-room J W Marriott while Guindy will get the 650-room ITC Grand Chola. Developing properties in the city is the Ceebros group with two Raintree Hotels (250 and 150 rooms) and the Empee Hotels group is building the 250-room Hilton. The Sriram Groups 250-room Hyatt Regency, the 140-room Park Plaza of Ferdous & Sarovor Hotels, the 120-room Pride Hotel, Malabar Hotel and Deccan Park (60) and the Taj-owned Ginger hotels are others coming up in the city. In 2008-09 , the rate per available room was Rs 6,895 in the five-star deluxe category, Rs 4,546 for five-star , Rs 3,452 for four-star and Rs 2,107 for three-star.

People will have many choices both in terms of prices and locations. This is a balanced growth that caters to all areas, said Nataraajan of the SIHRA.

Ref : The Times of India -Thursday, January 19, 2010