Hospitality Industry To See Steep Price Hikes, Says Lemon Tree Hotels’ Sharma
Higher occupancy rates in Indian hotels will lead to increased room tariffs from the next fiscal, according to Kapil Sharma, chief financial officer of Lemon Tree Hotels.
He said occupancy levels in economy hotels is projected to reach 80 percent, citing a Horwath research report. “Demand growth in the hotel sector is projected at 12.5 percent and supply is growing at 8 percent for FY2018-21,” Sharma said in an interaction with BloombergQuint. “The shortage of rooms and better demand situation is due to this positive mismatch.”
“It’s difficult to predict an exact range, but major (tariff) increases will be in the retail segment and corporate hikes will range from 4-10 percent,” he said.
Sharma said new hotels that are in advanced stages of completion and operation stabilisation in hotels opened in the last three years will drive growth in the next fiscal.