Dec. 03--NEW DELHI -- The national capital region (NCR) and Mumbai are likely to add around 24,000 hotel rooms in 3-5 years as the hotel market across Asia begins recovering with more foreign tourists visiting, property consultancy Cushman & Wakefield said in a report released on Monday.
The annual report on hotels in Asia, which covers 23 cities, estimates the industry grew at 8% in the first half of 2013 across Asia.
"Last year, 221.5 million international tourists visited Asia, which was 7.2% higher than in 2011," said the report. "Of all the sub-regions, Southeast Asia took the lead with a 9.9% year-on-year increase in arrivals."
But at hotels in Delhi, average daily rates (ADR) and average occupancy rates (AOR) are estimated to have decreased this year given the economic instability in the light of the impending general election due in 2014, coupled with a strong pipeline of new hotel inventory in the market, the report said.
"The stiff competition, together with lower AOR, is likely to put downward pressure on ADR this year. With such a scenario, budget and midscale segment hotels are likely to perform better than the upper upscale and luxury hotels, given their flexibility to play in a lower price segment," said Akshay Kulkarni, regional director of Cushman & Wakefield's hospitality sector group across South Asia and Southeast Asia.
"In fact, over the next three to five years NCR will have 18,064 additional hotel rooms. The average occupancy rate will be 61% while the average daily rate will be Rs8,906 approximately. The expansion will be seen in brands including JW Marriott, MGM Aloft, St. Regis, Conrad Hilton, Radisson Blu, Ibis and Lemon Tree," Kulkarni added.
"In 2014, the second half should see improved business activity as well as inbound travel due to elections and stabilization of global financial health," the report stated. "Improved perception of safety and security and stabilize political climate should also benefit in enhancing the business volumes."