The Hindu Business Line : Kolkata star hotels may hike tariff

Kolkata April 16 Riding on the back of the hospitality boom in India, star hotels in Kolkata might go in for a hike in tariff, by about 25-30 per cent, in September-October this year, according to industry players.

"There would be a possible hike in the average room rate (ARR) during September-October since the demand for rooms in the city will be quite high during that period," a spokesperson of Hyatt Regency, a luxury business hotel in the city, told Business Line. A similar view was expressed by Mr Ranvir Bhandari, Area Manager (East) and General Manager, ITC Sonar Bangla Sheraton & Towers. "The year which has gone by has seen a healthy rise in ARR. The same trend is expected to continue this year."

According to industry players, the average occupancy level in city hotels is 75 per cent to 80 per cent. Improved business conditions in West Bengal, national and international connectivity to and from Kolkata, and the growth of the hospitality industry in India have contributed to the business growth of the city hotels, say industry sources.

`Buoyant market'

"The market continues to be buoyant. Kolkata is attracting lot of investments and the rise in corporate travel has favoured the growth of city hotels," said Mr Taljinder Singh, General Manager, Taj Bengal. "Besides corporate travel, business also comes from the MICE (meetings, incentives, conventions and exhibitions) segment. Also, Kolkata being home to some of the top families of the country, weddings are held in star hotels, which is contributing to the growth," said Mr Bhandari.

"Kolkata being undervalued during 2005, the ARR in the city was relatively low. However, with an improvement in business scenario, the ARR in Kolkata is higher over last year's level. Increased tariffs are necessary to offset increased costs," the spokesperson of Hyatt Regency said.

According to experts, the current ARR is low compared to hotels in other metros.