Property consultant Knight Frank has said the Indian hotel room market is estimated to touch Rs 11,900 crore by 2013, translating to 17% average annual growth rate for 10 cities. Room in demand per day is estimated to grow at an average annual growth rate of 13.9% for upscale hotels and 9.3% for midscale and economy hotels, a report from the firm added. This is expected to impact the overall average room rates (ARR) in the country. A total of 2,843 rooms is expected in upscale and midscale categories of hotels, out of which 1,797 rooms will be added in the western suburbs by the end of 2013. Overall, occupancy across the hotels in India is about 45%-60%, except for Mumbai and Goa that are witnessing an occupancy of above 70%.
Projects that were at the core of completion in 2010 will come up by 2011. However, those in the pipeline for 2012 and 2013 will get further delayed, impacting developers' plans, Gulam M Zia, national director, research & advisory services, Knight Frank said. With the supply at its peak now, Zia added that developers are not keen on starting up with new projects in the coming year.