Business Standard

Rate oscillation

Image

Nayantara Rai New Delhi
HOSPITALITY: Guess which hotel in Delhi's NCR commands the highest average room rental figure?
 
At one point, it was a fact worthy of a quiz question: The Imperial in New Delhi was the chart-topper in command of the highest average rate realisation (ARR) in the national capital region (NCR).
 
But, Trident Hilton in Gurgaon has been giving The Imperial a run for its money since it opened in 2004. The highest ARR in the city now oscillates between these two hotels.
 
Spread over seven acres, the Trident Hilton is principally promoted by Sukhbir Singh Badal managed by the Oberoi group. The Hilton brand undoubtedly helps in attracting the international hotel chain's clientele from India and overseas.
 
Located 10 km from Delhi's Indira Gandhi international airport and 13 km from the domestic Palam airport, and in close proximity to big companies in Gurgaon such as PepsiCo, Coca-Cola, Microsoft, Kargil, ESPN-STAR Sports and ITC, Trident Hilton has become a favoured hotel for business travellers.
 
So, is it set to win the prestige stakes in NCR?
 
The Imperial certainly doesn't think so. According to its spokesperson, the Hilton Trident's ARR figures are not giving it any sleepless nights since it does not even consider the latter to be a part of its competition set.
 
Moreover, it has sought to take a different position in the traveller's mind. "The Imperial has been the discerning luxury high-end traveller's first preference," claims the spokesperson, "... all movements that are slated for central Delhi definitely come to The Imperial."
 
Perhaps that explains why the Trident Hilton has higher ARR and occupancy rates in the traditionally slow summer months. Last year, Trident Hilton's ARR and occupancy rates respectively were Rs 8,526 and 89.1 per cent in May, Rs 8,444 and 88.5 per cent in June, and Rs 8,403 and 84.1 per cent in July.
 
In the same months, in comparison, The Imperial's ARR and occupancy rates were Rs 7,363 and 78.39 per cent in May, Rs 6,695 and 69.21 per cent in June and Rs 6,921 and 71.16 per cent in July.
 
However, The Imperial scores better room rates and occupancy in the tourist season, beginning in October and lasting till February.
 
Hilton Trident, for its part, is just fine without tourist guests. It's located too far from the sightseeing hotspots of Delhi, and is positioned quite clearly as a business hotel.
 
In fact, many observers see Trident Hilton's ARR strength as a reflection of both the business boom and paucity of rooms available in Gurgaon (especially the prestigious DLF area).
 
B Hariharan, vice-president, sales and marketing, ITC Welcomgroup, says that the Trident HIlton is able to fetch high ARR rates on scarcity. It has only 136 rooms.
 
In comparison, The Imperial's has 232 rooms, and the Maurya Sheraton has more than 500. Perhaps so. But new hotels are coming up in the area, and then the Trident Hilton would have to compete purely on inherent attributes.

 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 13 2006 | 12:00 AM IST

Explore News