It’s boom time for hotels again

Though the Hyatt Regency formally opened only yesterday, it’s had a 100 room occupancy from November 27. Work is on at a furitive pace at The Grand Hyatt that opens its gates in April. There have been at least two restaurant openings a month, and at least seven more open this season... After a year of depression, Mumbai’s hospitality sector is looking up with an upsurge in occupancy, food and beverage (F&B) income and banquets.
“The market is buoyant,� says Captain C K P Krishnan Nair, Chaiman of The Leela.Hotel records show an occupancy of 90 per cent, 15 per cent higher than December 2001. It also hosts 28 weddings in December, 12 major conferences, and it’s F&B outlets are doing 20 per cent more business. It has stiff competition from The Grand Maratha Sheraton that has 75 per cent room occupancy, six major events in December and an average F&B growth of 18 per cent.
Mumbai has 4,500 luxury hotel rooms and most hotels are doing 70 per cent occupancy. Far too many rooms? Given the high occupancy, the increased supply seems to have pulled off an increased demand. Also, the north-south Mumbai divide — 2,000 luxury rooms in the South and 2,500 in the North — has struck a balance. For hoteliers, these are two cities and based on each’s USP and the guest’s area of work, the property is marketed. While the south leverages itself as the true Mumbai with the Gateway of India, Queen’s Necklace and financial hub, the north has Bollywood and airport proximity.
“Three things are important: excellent service, amenities and location,� says John Toomey, director (marketing), Marriott International, India. JW Marriott has as its biggest asset proximity to Bollywood. It also has 85 per cent occupancy. The Taj Lands End is doing an average occupancy of 81 per cent. F&B figures are up 20 per cent, and there are more than a handful of events lined up.
Industry watchers are hardly surprised. The Oberoi has 70 per cent occupancy, and vice-president Sanjeev Malhotra puts things in perspective: “People have not travelled for a while after 9/11 and the Parliament attack. But work must get done, and the traveller’s insurance risk is covered. The wheels of business are moving people.�