homehospitality NewsG20 Summit: Seeing additional demand in Agra, Lucknow and Jaipur, says Hotels Association of India
G20 Summit: Seeing additional demand in Agra, Lucknow and Jaipur, says Hotels Association of India
Ajay Bakaya, a member of Hotels Association of India, stated that they are also seeing additional demand in cities like Agra, Lucknow and Jaipur as the government has announced a long holiday for Delhiites.
With less than two weeks to go for the G20 Summit in Delhi, the hotel industry has witnessed a surge in demand for rooms and other services with rates expecting to hit an all-time high. Sources have indicated that the cost of a presidential suite in top luxury hotels could be as much as Rs 20 lakh per day during the summit.
Ajay Bakaya, a member of Hotels Association of India (HAI) and MD of Sarovar Hotels in an interview to CNBC-TV18 stated that they are also seeing additional demand in cities like Agra, Lucknow and Jaipur as the government has announced a long holiday for Delhiites.
Bakaya highlighted that luxury hotels are completely packed and are charging rents close to Rs one lakh per day. However, he added that mid-market hotels have not yet seen a jump in demand.
Below are the excerpts of the interview.
Q: Give us a sense of what is the demand that we are looking at from September 5 to 10 and what is the actual supply of rooms in the Delhi-NCR region?
A: It is certainly an interesting time. Things are a lot clearer now as we get closer to the actual dates of September 5-10. The very upscale hotels, the more luxury hotels are chock-a-block, and the rents are closer to Rs 70,000 to Rs 1,00,000 but those hotels are all up to the brim and bursting at the seams.
On the other hand, mid-market hotels have not seen a jump in demand. The fact that the government of Delhi has declared a holiday during the period means it is a long weekend. So, G20 related to the mid-market and economy hotels have not seen a jump which was anticipated.
However, we are getting additional business demand in Agra, Jaipur, Lucknow, cities closer to Delhi where people can get away on these days, so it works both ways.
Q: Are there enough five-star rooms for an event of this magnitude? You are talking about 10,000 delegates, they will all have to be put across five-star hotels. Is there enough supply? Are there enough rooms in the system?
A: If you pool Delhi-NCR together they are stretching out into Gurgaon, they are stretching out across Yamuna etc., then it is manageable. Of course, it would be nice if we had 50 or 100 percent more capacity. But with what we have, it's okay. People are not exactly lining up on the doorstep.
Q: We also hear that State Bhavans, Airbnbs are going to be drawn into the arrangement for the G20 delegations as well. Are you also assisting the government on getting the State Bhavans ready, some of the Airbnb's ready. How is that functioning?
A: I can't talk on behalf of Airbnb. I'm not familiar with that zone at all. I think the State Bhavans would be more for government dignitaries, government functionaries than for the international customers coming in, that's my sense.
Q: Could you give us a sense of the kind of special arrangements that the hotel industry has been asked to make by the government for the G20?
A: Top end, uncompromising on security. Probably a lot more than we do routinely. So, the security numbers have certainly multiplied, the security processes, the touchless processes, all of that I think we are more than alert and awake around the clock. And in anticipation we are doing drills, we are doing all sorts of process checks to make sure we don't fall on that area. So, there is a huge focus on security, over and beyond what you'd normally see in a hotel room in Delhi.
Q: Will there also be a lot of demand for people wanting to get out of the city during the period? It is going to be a holiday, everything is going to be shut in central Delhi, you are not going to be able to move, so do you get a sense of a lot of people wanting to move out, go to nearby areas for short vacations?
A: Big time. There is huge demand from the domestic customer. In fact, a lot of the Delhi people are happier moving out than staying in Delhi. So, there is domestic demand in Jaipur, Agra, Lucknow and the likes. Also, it is fueling some kind of a small revival in the hills which have suffered in the last month or two due to weather. So, we are seeing demand slowly pick up. A lot of delegates will also take time to get away from Delhi into closer destinations. So yes, demand there has picked up anywhere from 30 to 60 percent.
Q: A lot has been spoken about presidential suites during the G20 Summit. According to some reports, the prices may go up to Rs 20 lakhs, this would be up almost 100 percent from a normal day in the year, is that correct?
A: No, I wouldn't say so. The take on presidential suites is very simple. Either people can afford them, or they can't afford them. Presidential suites are seldom discounted, if at all. So, this Rs 20 lakh number, maybe one or two suites in the whole of Delhi. And, this is not this not doubling from what you'd normally charge. If there's a head of a company or head of a large industrial conglomerate coming in, he would pay the same amount. I don't see a change in that. The increase would be in your standard rooms more than the suites.
First Published: Aug 29, 2023 8:11 PM IST
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