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Festive season fuels revival in hospitality sector

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After witnessing a long period of slowdown, the hospitality sector in the country is showing signs of recovery, thanks to the onset of the festive season.

While business properties have shown consistent volumes, the luxury, resorts and leisure properties are doing fairly better than the last year.

Kamlesh Barot, past president, Federation of Hotels and Restaurants Association of India, said, "This year is actually quite better than the last year. Because of the city to city divide, the growth has taken off at a different level but overall the growth this year has been higher by 5.5-6% CAGR."

Barot said that the business has picked up well this year with the Indian coastline completely sold off. "Consistently, for the past six months, the luxury properties and resorts are doing extremely well, especially those around the coastlines. The continuing problems in Egypt and the Mediterranean regions have worked in our advantage with an increasing number of foreign tourists booking our coastlines well in advance," Barot said.

Sanjay Sethi, managing director and CEO, Berggruen Hotels, said, "The last four months is better, especially July onwards. The growth could be roughly around onwards 15%."

Sethi said his own properties, resorts and leisure, are doing good business. "Our property at Goa is doing 60% better than what it did last year. Mahabaleshwar property is also doing a rocking business with at least an upward growth of 15%. However, there are green shoots of recovery and the sector holds promise for the future.

Both Barot and Sethi said that the average room rates (ARRs) for the leisure and luxury properties have increased. However, for the entire sector the ARR is around Rs 5,500-6000.

"All domestic players usually take a price hike before the start of the festive season. We, too, have increased our rates on a higher demand, by about 10% since September," Sethi said.

With Diwali around the corner, some hotel companies, have also embarked on giving offers and discounts to attract more guests.

As part of its Diwali promotions, Hong Kong-based global service brand Plaza Premium Lounge has offers on bar such as "Buy 2 get 1 Free" and other discounts on all liquors. The brand which is located at the domestic and international terminals of Delhi, Bangalore and Hyderabad airports have come up with offers on spa & massage facilities too.

The Taj hotels, which are owned and managed by the Indian Hotels Company, have come out with gift certificates which includes a meal or a stay at any participating Taj hotels in India. The certificates are available in denominations of Rs 500, Rs 1,000, Rs 2,000.

It has also announced offers such as Royal Retreats for 2 nights on double occupancy, starting at Rs 75,000 at the Taj Falaknuma Palace in Hyderabad and at Rs 98,000 at our Grand Palaces in Rajasthan and include, airport transfers, traditional welcome, breakfast, heritage walk of the palace, use of spa wet areas, 15% off on jiva spa treatments, 10% off on food and beverages, telecom and laundry. The second room for 2 children below 12 yrs of age is available at 50% of the rate. Taxes applicable.

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