The Hindu Business Line : North Mumbai hotels bounce back after flood

THE hotels of north Mumbai, which faced severe flooding during the July 26 deluge, are not expected to suffer any long-term impact on account of their location.

The hotel industry is making a quick recovery after the heavy rain that disrupted operations in the last week of July and the first two weeks of August.

According to an analyst tracking the segment, the flooding in the northern suburbs was unlikely to have a major impact on their business in the long term, and the impact of the crisis brought on by the rain was limited to the week immediately after the downpour.

She added that hotels were planning to adjust upwards their rack rates by 15-20 per cent in the approaching busy season.

One of the reasons why travellers would continue to check into the suburban five-star hotels is their proximity to the airport and the business districts that have come up in the suburbs, such as Bandra-Kurla and Andheri, she added.

Over the years, the airport hotels have drawn a large segment of business travellers; over the past six months, north Mumbai hotels recorded occupancy of 75 per cent compared to 69 per cent in the south.

According to a real estate consultant with Chesterton Meghraj, the rain and flooding are unlikely to affect business at the north-based hotels.

Intercontinental The Grand, one of the airport hotels, had to curtail operations immediately after the rain. Though fully operational now, occupancy last week was down to around 22 per cent. However, a hotel official said that the hotel was optimistic of bookings picking up in the coming months. He added that the disruptions did not impact the average room rates either.

Mr Ilan Weil, General Manager of The Grand Hyatt, said that there was little the hotel could do about the heavy rain and the consequent flooding, given that it was one of the heaviest in 100 years.

He added that the hotel did not suffer much damage except for a few leaks, which are being plugged. The hotel is located in the suburb of Kalina, which was one of the worst affected areas.

Occupancy in August, which is a lean month for the hospitality industry, was expected to close at around 70 per cent. However, Mr Weil is optimistic that occupancy would improve to 80-93 per cent during the peak season, from September to March next year.

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