New hotel projects likely to spice up IT city stay

New hotel projects likely to spice up IT city stay

Addition of nearly 8,000 rooms should lower room tariffs

Daily News and Analysis


Bangalore has already earned the tag of being the third most expensive city for hotel rooms in the world. Given the high room costs in the tech hub, many executives find it cheaper, though inconvenient, to fly to Chennai and travel to Bangalore on a daily basis.
India’s silicon valley has a supply of nearly 2,500 rooms in the luxury segment, but, with an increasing number of business visitors to the city, the current demand is for around 5,000 rooms, according to hospitality industry consultancy firm HVS International.
The demand-supply gap may soon change, with a host of new hotels planned in the garden city over the next two years. These projects, involving an investment of around Rs 3,000 crore, will add around 8,000 rooms in both the budget and luxury segments.
ITC, which already has Windsor Manor, a five star property near the Golf course, is building a 230-room seven star luxury hotel, ITC Gardenia, in the city centre. It also plans to set up another luxury hotel in the city.
Joining ITC for nearly 30 new hotel projects in the city are global majors like JW Marriott, Hilton and Radisson and Indian hotel chains such as the Taj group, Bharat Hotels and Park Hotels. “At present there is a good mix of both luxury and mid-market hotels coming up in Bangalore,” HVS International managing director Manav Thadani said.
Most of the new hotel properties are to be completed by 2008, when the new international airport is ready to receive its first load of passengers.
“The hospitality sector in Bangalore is at a very critical juncture right now, with demand far exceeding supply. The city needs more 5-star facilities that will offer discerning travellers the very best in terms of amenities and facilities,” Nitesh Estates managing director Nitesh Shetty said.
Nitesh last week announced that it is building a 300-room five-star hotel on Residency Road and was in talks with several international hotel chains for the project.
“The demand-supply gap may narrow once all the hotel projects fructify. But if the economy grows as it is now, we may not see any change in hotel rates,” said Chander Baljee, CMD, Royal Orchid Hotels, which is adding 150 luxury rooms to its 50-room resort in the city.