Similarly, Pune, which scored as the third highest on the list saw its occupancy rate decline to 81% from 87.7% in the corresponding period the previous year. Delhi also witnessed declining occupancies from 81% in April 2005 to 80.2% in April 2006.
However, a whopping 34.5% growth in average room rates (ARRs) ensured that the cash registers kept ringing.
According to research analyst with Pioneer Intermediaries Amol Rao, The increase in the ARRs was more than the decrease in occupancies. During April 2006, hotels in ten cities across India increased their ARRs by a whopping 35% from Rs 5,592 in April 2005 to Rs 7,563 in April 2006. This led to a healthy 34% increase in the revenue per available room (RevPAR).
Bangalore recorded the highest RevPAR at Rs 9,736. Hyderabad and Delhi followed in second and third positions with RevPARs of Rs 6,629 Rs 6,558 respectively. But ARRs are set to rise even further.