| T Nataraajan, chief executive officer, GRT Hotels and Resorts, which has under its umbrella properties like Radisson GRT Hotel, GRT Grand and GRT Temple Bay said, "Everybody is doing around 80 per cent (room occupancy rates) while the same time last year, we were doing around 60 per cent. If the trend continues, we should do about 86 per cent as it usually picks up in the second quarter and runs for the third and fourth quarters." |
| Business travellers have been the main catalysts for the spurt in occupancy rates. Both domestic and international travel has experienced traction, with almost all flights, in all sectors going full. The main industries that are responsible for the growth have been IT, BPO, auto, banking and garments. |
| Chennai, over the past year, has been the recipient of investments from a variety of industries. Nokia's announcement to set up operations here, Hyundai expanding capacity, Intel's impending investment and most tier one and tier two IT/BPO companies zeroing in on the city to set up big facilities have given a huge fillip to the investor climate in the city. |
| However, it's not just occupancy that's on the up. Food and beverages (F&B) sales have been surging too. Most hotels across categories have exhibited a 15-17 per cent rise. |
| The reasons for this are fairly obvious; local entertainment has picked up, corporate conferences and seminars are a frequent phenomenon, Chennaites are wining and dining more, business travellers are entertaining customers and their own employees. |
| Bangalore's burgeoning growth has had a positive rub-off effect on the city. Due to the large gap between demand and supply for hotel rooms in Bangalore, business travellers stay in Chennai and fly to Bangalore in the morning, attend the business and then head back. |
| V V Giri, general manager, The Park, confirmed the trend: "Yes they do, mainly the IT guys. It was very prominent in the last quarter of last year, especially when the air show was on." |
| The good news is that the growing demand is going to be met, as there are about five to six hotels already on their way and will be opened for business in the next year or two. Plus there are a few others on the drawing board. One of them is Taj's 175-room hotel scheduled to open sometime in 2007. |
| The hotel is a brownfield project; TAJGVK Hotels and Resorts Limited (TAJGVK) had acquired Sri Tripurasundari Hotels Limited's (STHL) sole property late last year. |
| The K Raheja Corporation's new four-star hotel with 150-odd rooms is also all set for an opening in the near future. The other spaces to watch out for is the IT corridor near Siruseri and the area near the airport. |
| Happy hotels |
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