The Hindu Business Line : Hotel industry witnessing boom in AP

In both the five-star and the `budget class' of hotels, Hyderabad has emerged as a favourite destination for new ventures, some of which are already under way.

Hyderabad , Oct. 9

RIDING on the steady growth of the information technology sector, the hotel and hospitality industry in the State is thriving, with healthy occupancy levels and consistent increase in demand.

In both the five-star and the `budget class' of hotels, Hyderabad has emerged as a favourite destination for new ventures, some of which are already under way.

For example in the Star category at least four hotels are coming up. These are being set up by the Leela Group, Park Hotels, Emaar Group of Dubai and a big realtor from the State.

The President of the Hotels & Restaurants Association of Andhra Pradesh, Mr Rajiv Narain, said at least 1,000 rooms are expected to be added in the next two years in this category alone.

Mr Narain, who is also the General Manager of the Taj Residency Hotel, told Business Line that so far the push for the hotel industry has been given by the booming IT, especially the business process outsourcing sector. It has to be sustained by tourism, and other industry sectors in the coming years.

The Taj Group, which has three major properties in the posh Banjara Hills area, is seeing a steady 9 per cent growth. "We are planning to time our heritage property at Falaknuma with the opening of the International Airport at Shamshabad, sometime in 2007," he said.

More than 90 per cent of the customers in most of the big hotels are from the corporate sector. The promising trend in the pharma industry, sports events, more international airlines landing in Hyderabad and the film industry portend well for the continued growth, he felt.

In the budget class, there has been a major change. In addition to the Green Park, Manohar, Fortune Katriya, new hotels such as the NKM Grand of the Swati Group, Minerva Grand from the Viceroy Group and many more coming have boosted the options for customers preferring economy and quality.

The Director of Minerva Grand, Secunderabad, Mr A. Ramakrishna Reddy, said a total of 100 rooms are being made ready in the next few months at the property. It has already a huge conference hall, the regular eating places at economic tariff.

The Group, which runs the Minerva Coffee House, Blue Fox, Palace Heights and Viceroy is ready to offer about 250 rooms in Hyderabad alone. It is planning to add a three-star hotel in Visakhapatnam soon, Mr Reddy said.

Mr Reddy felt that the two-three star hotels segment is in for a quantum growth. There are a growing number of clients who prefer decent comfort, hygienic food, and quick time service, all at competitive tariff. Hyderabad, is in a good position to offer this at present.

Mr G. Yoganand, Chief of Manjeera Estates and Aditya Park Inn Hotels, saw fast growth and intense competition emerging in the budget class segment soon.

At present the occupancy rates in most hotels are ranging between 80-90 per cent in weekdays. There is a slight dip during weekends.

The pressure is so high, in some of the hotels that at times of major conferences and events, they are forced to say no. A visiting delegation led by the Karnataka Secretary for IT and STPI Director, Mr B.V. Naidu, was delayed to a media meet recently because they could not find accommodation at a leading hotel and were told that all rooms were full.

With 88 rooms at Aditya Inn, the Group is planning to come up with a two-star hotel `HomeTel', in the City. It is targeting the business travellers, in-house residents, who would get three-star facilities at two-star tariffs and with hygiene that matches their expectations, he said.

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