SC ban to hit hotels in Pune, Kolkata, Agra hardest

Five-star hotels in Pune, Kolkata and Agra will be the most hit from the Supreme Court verdict that banned serving liquor along the highways.

Mumbai and Goa are expected to be least affected as no major premium hotel falls within the 500-metre range of a State or national highway, according to an analysis report by CRISIL Research.

“We have assessed 384 premium segment hotels (5-star and 5-star D category) across top 12 cities, of which 102 hotels stand affected which means nearly 27 per cent premium hotels in these cities will be compelled to stop liquor sales. The major impact would be encountered by cities such as Pune, Kolkata and Agra,” CRISIL said in its report.

It estimated that about 71 per cent hotels in Pune, which lie along NH-8, NH-60 and SH-27, have already started to face the brunt of the judgement. Meanwhile, the ban impacts 69 per cent of the premium hotels in Kolkata.

“Agra witnesses a major impact, as 67 per cent of hotels are along SH-62,” the research report added.

Standalone liquor sales alone account for about 10-30 per cent of the total food and beverage revenues for hotels. However, the report pointed out that the ban will also impact demand for rooms and revenues earned from food, as customers will prefer hotels that serve liquor. “All these factors together will have a major impact on revenue for the hotels on the highways and will also result in decline in profitability for the players,” the report added. About 48 per cent of the premium hotels in Chennai and Ahmedabad, and 26-25 per cent in Jaipur and Delhi-NCR will be severely impacted.

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