Occupancy in Bangalore hotels drops by 50%

With holiday season setting in, hotels in Bangalore have taken a hit with average occupancy during December 15-January 7 seen at around 40 per cent, compared to an annual average occupancy of 75 per cent-80 per cent, industry players and analysts said.

However, the drop in occupancy is unlikely to lower room rates, which continue to remain stable on expectations of a booming season ahead.

"We expect average room rates to rise, primarily because the January-March period will be a high demand period where the market will be buoyant and occupancy high across all room categories including suites," said the spokesperson of The Leela Palace, Bangalore in an e-mailed response.

Hotel Leelaventure with one property in Bangalore, has increased capacity to 356 rooms during the current financial. With both domestic and foreign travellers taking a break from office work during Christmas and the New Year, it is slack season for hotels in the city.

Foreigners account for nearly 60-70 per cent of Bangalore's luxury hotel business, said Taposh Chakraborty, Principal, Boutique Hospitality Consulting, a city-based hospitality consultancy firm.

"Around 90 per cent of this segment (foreign travellers) will not be available due to Christmas and New Year," he said.

This is also the time of the year when domestic travellers indulge in leisure travel, thereby contributing to the fall in occupancy, said the spokesperson of The Oberoi, Bangalore.

"Occupancy during this time will come down to below 50 per cent and could be even less," said C K Baljee, chairman and managing director of Royal Orchid Hotels.

ROHL currently has four hotels in Bangalore with a total of 450-500 rooms.

Currently, Bangalore has about 3,000 hotel rooms with major players including ITC, Taj (Indian Hotels Company ), ROHL, Hotel Leelaventure and Oberoi (EIH) having presence through one or more properties.