Demand to outstrip supply of hotel rooms: Study

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Bangalore, Delhi and Mumbai are among the 21 cities in Asia-Pacific, where demand for hotel rooms will continue to outstrip availability, a study has said.

As per American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast released today, Bangalore is projected to have a 225 per cent increase in demand for hotel rooms during 2006-08, while it was found to be 44 per cent for Delhi and 30 per cent for Mumbai.

According to the study, in Bangalore occupancy rates were stable at around 70 per cent. Despite poor city infrastructure, the supply would increase dramatically.

In Delhi, occupancy was high and stable, averaging at 80 per cent and there was significant new construction to reduce under supply and access has been improved by low-cost carrier networks.

Normal occupancy for Mumbai was 75-80 per cent. New supply near commercial centres and major initiatives to develop city into international metropolis were pushing the demand.

The study also found that the increase in demand of hotel rooms would force up the `corporate negotiated rates' in all the major cities in the Asia-Pacific region.

"Travel Managers and procurement professionals will continue to face many challenges when managing hotel expenses.