IPL and return of big ticket conferences put Mumbai hotels in high demand

Thanks to high occupancy, room rates have jumped by a staggering 65-66%, according to media industry sources

Try booking a room at a five-star hotel in Mumbai and you could be in for a disappointment. You may have to settle in for a four- or even a three-star. But since those will not be easy on pocket either, be prepared to fork out more.

Most of the premium business hotels operated by the marquee brands are all booked by the teams of the Indian Premier League for a month as the matches are being held in two cities – Mumbai and Pune.

It isn't IPL alone. A full-fledged return of some of the big ticket conferences like HICSA (Hotel Industry Conference South Asia) EXCON 2021, which is expected to see a bevy of international delegates, has also pushed up occupancies at the hotels.

“There’s huge pent-up demand as corporates and industry associations get back to hosting large ticket events,” said Nandivardhan Jain, founder and CEO at Noesis Capital & Advisors.

Given the mismatch in the inventory of rooms and demand, hotels – be it a Sofitel or an Ibis, are commanding price premium, he added. Mumbai accounts for the biggest share in the MICE (meetings, conferences, incentives, events) followed by Delhi and Bengaluru, said Jain.

Thanks to high occupancy, the room rates have jumped by a staggering 65-66 per cent, according to media industry sources. Consider this: standard room rates at five-star hotels such as Grand Hyatt, Santacruz and Taj Land's End, Bandra before IPL stood at 12,000-15,000 plus taxes per night (single occupancy).

Now, that is, during the IPL season, they stand at Rs 20,000-25,000 (including taxes) per night. For executive suites, the room rate currently is around Rs 45,000-46,000 with taxes per night. And luxury suites are priced at nothing less than Rs 80,000-85,000 (with taxes) per night.

Photo: IPLT20.com

The IPL business gives a further heft to the strong recovery in demand the hospitality firms are witnessing since the pandemic’s second wave ebbed.

Currently, IPL is a great contributor, said KB Kachru, vice president, Hotel Association of India. “The MICE too has started coming back. Mumbai and Delhi are front-runners and we are expecting the trend to catch up in other metros.”

“What we are experiencing in the last four to six weeks is such a strong revival. I can definitely speak for IHCL that our March, April and May (2022) business on the books is higher than March, April and May of 2019,” Puneet Chhatwal, Managing Director, & CEO, Indian Hotels Co told PTI in a recent interview.

Media industry sources point to the mass bookings by IPL teams for the paucity of inventory and hike in room rates.  For instance, the visiting Chennai Super Kings team  and home favourite Mumbai Indians are stationed at the Trident in Nariman Point and Bandra Kurla Complex respectively.

Delhi Capitals are at the Taj Palace in south Mumbai. While Gujarat Titans are residing at JW Marriott, Sahar, and KKR at ITC Grand Central, in Parel. Lucknow SuperGiants are staying at Taj Vivanta in Navi Mumbai and  Punjab Kings are staying at the Renaissance in Powai. Rajasthan Royals are at the Grand Hyatt in Santacruz. Royal Challengers Bangalore are at the Taj Lands End in Bandra. And Sunrisers Hyderabad are at the ITC Maratha, Sahar.

The teams will travel to Navi Mumbai and Pune for their matches, which will be held at the DY Patil stadium in Navi Mumbai and MCA Stadium in Pune. While matches in Mumbai are being held at the Wankhede Stadium.