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Lodging and Boarding in Bangalore - Enough and Reasonable?
kbsyed61 - 7 July, 2008 | Bangalore | Hotels | Everything else
It seems we have a 'Nack' of overlooking some imporatant needs of the city. We try to overlook the need and at times go to an extent that we rubbishes the need. This needs suddenly erupts like a volcano and then suddenly we wake up from our deep sleeps and myopic urges, we start shouting from roof tops about the volcanoes. Then we start blaming everybody except ourselves. In order to beat the others in this blaming game we give ourselves tags like experts and what not.
One of the event that has shaken us to wake from deep sleep is the shifting of India Aviation Exhibition show from Bangalore to Hyderabad. One of the reason cited is the lack of proper infrastructure and sufficient accomodation. Here is the news link for this story "Bangalore Losing the Aviation Shows to Hyderabad" (Courtsey - New India Press).
The fact is Bangalore doesn't have the enough hotels/lodges for the vistors and tourists. One's that exists are far too less in numbers and expensive in tariffs for the growing potential of Bangalore. It is not only the tourists/visitors that come to Bangalore. Various scores of other categories of population like business men & women (small & large), professionals, Industry delegations, families and friends etc. This situation is not of todays making. Even before the IT tag, in 1970s and 80s also for lodging you have to go to certain parts like Majestic and K R Market area. Compare to that, other cities like H'bad had good numbers spread accross the city. Even after the iT boom, the hotel tariffs were much higher in Bangalore. Techies and coporate travellers didn't had to worry about the cost. It is the ordinary folks from places like Mandya, Mysore, Mangalore, Hubli, Dharward etc had to shell out the exhorbitant amounts to stay in Bangalore. I am not sure how many rooms were added in last 10 years.
It is very interesting that recently the new government had publicity mela at IISc for Infrastructure development in Bangalore. I did not come accross any news/talk about adding more lodging nad boarding facilities. Isn't the Lodging and Boarding an imporatant part fo the Infrastructure requirement? Why is that we are neglecting such an important need of the city? Why is that we are overlooking this particular sector whichhas always beenan employment generation avenue? Is it a misplaced thinking that we should care for the locals only, visitors comes last? We can continue to neglect this, but the cost would be Bangalore's and Bangalore's loss is Karnataka's loss.
Syed
COMMENTS
Numbers Please !
kbsyed61 - 7 July, 2008 - 15:23
Is there any data available on this business sector?
more coming...
narayan82 - 7 July, 2008 - 16:33
needless to say this BIG Business OP has paved way for a number of hotels which are still under countruction. Marriot (UB City), Sterling MAC (Opp. Leela) and Ritz (opp.Cash Pharamacy) and ITC Sheraton (Lavelle Rd) are some of the bigger ones. But there are so many home stays, and smaller accommodaions that have crept in making a good business model for themselves. Because of the shortage there was a skyrocketing rise in rates making Bangalore as expensive as NYC or London. In my view this is all part of the consequences that happened when the city enlarged quickly without giving any time to respond. Solutions to such problems (Beds) cannot be created overnight! But beacuse there is so much private sector participation I see this being resolved rather fast.
Getting hotel rooms willsoon be easier
amaku - 12 July, 2008 - 14:31
At least accoring to this article (I think it is focussed on the high end):
http://business-standard.com/common/news_article.php?tab=r&autono=319234&subLeft=1&leftnm=1
If you thought getting a hotel booking easily is just a dream, think
again. In a year from now, at least three cities – Hyderabad, Chennai
and Bangalore – will see room availability crossing the demand.
According to a Crisil research report, this will dampen the high
occupancy rates in these cities, a projection supported by another
study by American Express which was released in Sydney recently.
The most dramatic increase will be in Chennai where the supply will go
up by 30 per cent in a year against the current demand of 15 per cent.
In Bangalore, while the demand will be 20 per cent, supply will be 27
per cent. The increase in supply in Hyderabad will be 29 per cent
against a demand of 15 per cent.
This could be music to the ears of leisure and business travellers as a
surplus situation will lead to stiff competition and generally a
decline in the average room rates (ARRs).
Boom time
The reason for the room inventory going up in these cities is that big
names in the hospitality industry are setting up properties in these
cities in view of the economic boom and the emergence of these cities
as big business convention destinations.
Take a look at the infrastructure projects in the pipeline and at
different stages of completion in these cities. With 39 hotels under
various stages of development, Bangalore will get 3,000 rooms by
2008-09, as compared to the present 2,300, an increase of 30 per cent.
Hyderabad will get around 2,200 rooms by 2008-09 as compared to the
existing 1,600, an increase of 38 per cent. The room inventory in
three-, four- and five-star categories will double from the existing
3,500 to 7,000 by 2011-12.
Top end hotel chains like the Hilton, ITC, Taj and Park Hyatt will all
add at least 15 properties by 2012. Chennai, which has 19 hotels under
construction, will get around 2,400 rooms as compared to 1,650 rooms
now, an increase of 45 per cent.
Lower rates
Occupancy levels will also see a dip in these cities. For example, in
Hyderabad occupancy levels could fall from the current 72 per cent to
64 per cent next year and Bangalore could witness a fall from the
current 75 per cent to 70 per cent in the same period.
According to experts, the ARRs (average room rates) in these three
cities is likely to fall 6-10 per cent. However, not everyone agrees
that the surplus would lead to lower ARRs.
“The ARRs might come down, but then strong players can still decide
they will maintain the rates. For example, Shangri-La did not bring the
rates down in Singapore even though availability went up sharply,” said
an executive of a five star property in Hyderabad.
Devesh, Chamber's view point !
kbsyed61 - 11 July, 2008 - 21:26
Devesh,
Any thoughts of yopurs on this topic? For general growth of Bangalore, affordable and reasonable boarding and lodging is a necessary component. Is ther any efforts from Industry Chambers and GOK to address the shortage of hotel rooms in Bangalore?
Syed
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