BRICS summit causes luxury hotel room scarcity in Delhi
What's the story
Delhi's luxury hotel market is witnessing a major spike in room rates and a shortage of availability ahead of the BRICS Summit. Several high-end hotels are either fully booked or quoting rates that run into six figures per night. A check for bookings between September 11-13 revealed no availability at Taj Mahal and Taj Palace, while The Oberoi was sold out for parts of the period.
Booking trends
Hotels like ITC Maurya and Shangri-La Eros have rooms
The two-day geopolitical event is compressing demand over several days, as delegates and other visitors arrive early and extend their stays. This has further strained room inventory in central Delhi.
Hotels like ITC Maurya and Shangri-La Eros have rooms but at exceptionally high tariffs, highlighting the premium on accommodation during this period.
Impact on travelers
Surge in room rates may force tourists to look elsewhere
The surge in room rates could force tourists, business travelers, and families with pre-planned trips to Delhi to either pay a premium for high-end hotels or look for accommodation further away from central Delhi.
Some may even have to change their travel dates or opt for budget-friendly options.
Nikhil Sharma, MD & COO of Radisson Hotel Group South Asia, said September is showing stronger momentum with average room rates across their portfolio pacing over 25% higher year-on-year.
Market impact
BRICS summit emerges as major demand catalyst for luxury hotels
The BRICS Summit is emerging as a major demand catalyst for Delhi's hotel market, especially in the luxury and MICE segments.
These events usually create concentrated demand for rooms, meeting spaces, and other hospitality services.
However, it's important to note that hotel tariffs and room availability are dynamic and can change rapidly based on bookings/cancellations or inventory released by properties.