The Hindu Business Line : Room for hospitality growth in Pune

According to a Knight Frank report, Pune will see 4,500 to 5,000 more hotel rooms across categories by 2010-11. Currently there is a shortage with 1,020 rooms under the premium category and 375 rooms in the three-star category playing host to the city’s visitors. The manufacturing and automobile units in Pimpri-Chinchwad as well as Chakan and Ranjangaon Industrial areas contribute to an average of 55 per cent of the total room demand while the IT sector in the city contributes 45 per cent. The airline transit crew generates around 2-3 per cent of room nights annually in few four-star hotels.

‘No sudden boom’

Mr Atul Goel, Managing Director, Goel Ganga Group, says the boom in the hospitality segment is not ‘sudden.’ “And it has nothing much to do with the Commonwealth games planned in Pune. Developers had recognised the need and some had the floor plan ready or in the pipeline. Yes, with the advent of the Games, the acceleration took place in certain areas. The growth of the academic segment and IT/ITES certainly helped, coupled with high disposable incomes.

Some of the new projects coming up include the Hyatt, JW Marriott, Leela, InterContinental, Starwood, Holiday Inn, Crowne Plaze, Westin and other international and national hotel chains. The special purpose vehicle floated for the Rs 360 crore-International Convention Centre (ICC) promoted by the Mahratta Chamber of Commerce, Industry and Agriculture will emerge as South Asia’s largest International Trade and Convention Centre with a 380-room hotel and 2,800 seat convention centre.

Projects in pipeline

Leela Group of Hotels is coming up with over 200 rooms of 5-star category, a business-cum-resort hotel near the Pune Golf Course, Radisson with 100-rooms promoted by the Runwal Group is under construction. Taj is venturing into Hinjewadi along with Padma Vihas Palace at Wanowrie with a 45-room boutique hotel and Ginger has its budget hotel in the Chinchwad area with 101 rooms. Accor, the Australian chain, is planning to come in with its signature brand Ibis under the budget hotel category.

“There was a time when, with the coming up of Le Meridien, there was an oversupply of hotel rooms. Meridien and Taj Blue Diamond were offering rooms at a discount of Rs 3,000-5,000. Today, rates have gone up to Rs 12,000, because of supply and demand mismatch. That can also be seen from the banquet rates — a year ago it was Rs 450 per person for a lunch or dinner banquet at the Meridien, it is now Rs 950,” an analyst says.

Ms Kruti Jain, Executive Director, Kumar Builders, says the Commonwealth Games are a trigger but surely not the only reason. According to reports, business travel to the city has increased by 12 to 15 per cent since 2000. Also nearly 60 per cent of the total visitors to the city are foreign business travellers. Currently 85 per cent of guests in five-star and five-star deluxe hotels and 80 per cent in four-star hotels are business travellers.

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