02 November,2010 06:59 AM IST | | Debarati Palit
At least five 5-star hotels will set up operations in city in a year, adding 1,000 rooms
The hospitality industry in the city is looking up. Some of the best names in the industry such as Hyatt, Marriott, Holiday Inn and Sheraton, among others, will set up operations in the city in a year or so. This means that there will be an addition of more than 1,000 rooms.
Competitive market
"The next three months are crucial. The market is getting competitive. The occupancy rate has increased by 20 per cent and the market share will also increase. This year we had 45 per cent to 50 per cent occupancy rate," said C Behl, president, Hotels and Restaurants Association (Pune Chapter).u00a0
These hotels are looking at getting business from the medical, pharmaceutical, fast moving consumer goods (FMCG), automobile and IT sector.
Gadi Hassan, general manager, Hyatt Regency, which launched recently, pointed out that the market would grow in the long run. "Business will bring more business and there is enough business in the city. We will therefore launch Hyatt Grand by next year."
Prices going south
As five five-stars are set for launch, to keep up with the competition hotels are using various strategies such as providing unique facilities and slashing tariff rates.
"We have seen that five-star hotels have slashed their rates by almost 40 per cent," said Behl. "You might get a room for Rs 6,000 at any of these hotels."u00a0
Megha Ajgaonkar, director of Sales, Westin, said, "As the number of rooms is increasing, clients will take advantage of the situation and ask for lower prices. We are doing price corrections from five to 20 per cent."
Balan Paravantavida, GM, Pune Marriott Hotel and Convention Center, said, "We are well-equipped to compete with the hotels coming up.
We have provided technologically advanced audio-video facilities."u00a0
Benefits for all
With the big hotels coming up, the local nightclubs and eating out joints are also hoping to pick up business.u00a0
Shailendra Kekade, Executive Chef at Stone Water Grill said the picture was looking good.
"Hangout joints will get a boom and the amount of money spent will also increase," said Kekade.
