Chennai: Over seven five-star hotels are set to open in Chennai over the next 5- years. Thanks to the IT boom and the industries hub that the city has become, the demand for hotel rooms has shot up.
Call it a five-star blitz, if you like. Chennai's hot for the hospitality industry, even as hotels struggle to grow in other metros. Some of the biggest names in hospitality will be in Chennai by 2011
“Chennai has been a sleeping giant where we have very good infrastructure. The investment climate is very good and because of this. Chennai is expanding very fast,” says Nisha Purushotaman, MD, Empee Group.
The Leela Group will put up a 380-room hotel, investing about $90 million by early next year. The Empee Group Hilton International, the Welcomegroup's Grand Chola, JW Marriott and Taj GVK will also open in Chennai.
But is there room for all these hotels? “Chennai has always been way behind the competition and it's only now that it has woken up to reality that we do need all of them and that's why you see a surge of hoteliers coming here,” says Sanjay Chugh,VP, Transaction Management Service.
Chennai's occupancy rate is about 80 percent, and compared to the other metros the average room rates are lower, with a room costing about 8 to Rs 10,000 a night. Analysts say this is contributing to the hospitality blitz in Chennai.
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