Empty rooms force Chandigarh hotels to look at MICE

Empty rooms are forcing three- and five-star hotels in Chandigarh to look at the meeting, incentive, conference and exhibition (MICE) segment of the tourism industry to sustain their business.

The city has over 600 and 1,300-1,500 rooms in the three- and five-star categories, respectively. Some of the major players are The Taj (149 rooms), JW Marriot (164 rooms), Mountview (156 rooms) and The Lalit (179 rooms).

The proposed expansion of the IT park in the city had prompted many of the hotels to expand. However, court orders squashing the expansion plans because of problems over land acquisition stalled the growth of the IT park.

A collateral casualty was the hospitality industry. Now, there are more rooms in these hotels than there is demand for them, resulting in a fiercely competitive market.

Sandeep Makroo, head, sales and marketing, Taj (Chandigarh), told Business Standard: "The current occupancy in the five-star category is about 60 per cent. In both the five- and the three-star categories, the city is experiencing an excess of supply."

He also said: "In the recent past, many hotel chains commenced their operations in the anticipation that the city will expand and new projects will come up. However, contrary to their expectation, there was on development in the last few years. The subdued economy added to the worries of the hospitality sector." Manmohan Singh Kohli, chairman, Hotel and Restaurant Association, Chandigarh, echoed Makroo. "in order to sustain in this market, the three- and five-star properties would have to concentrate on efficiency."