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The seemingly perennial economic meltdown in India Inc. has left hospitality players in Ahmedabad reeling under declining occupancy rates.
While major hotels had been banking on corporate meetings and business travel in Ahmedabad, the market gloom has instead pulled down occupancy rates in city.
"There are no new corporate projects being announced in Gujarat in the recent times. Business travel has taken a hit in the state. Add to that, the hospitality industry is in the middle of an off-season till October," reasoned Girish Ganeshan, General Manager of Hyatt Ahmedabad, the only other five star hotel in the city with 178 rooms which is running at a less than 50 per cent occupancy rate.
Similarly, Bhagwati Banquets and Hotels, which has hotel properties in Ahmedabad, Surat and Rajkot, has seen an impact of around 15 per cent on its occupancy rates.
"Corporates are on a cost cutting spree. Usually occupancy rates in the current period range around 55-60 per cent. However, there has been a severe drop in business as well as leisure travel due to economic gloom especially post rupee depreciation. This has impacted occupancy rates in the industry by around 10-15 per cent, which have now come down to 45 per cent," said Narendra Somani, CMD of Ahmedabad-based Bhagwati Banquets & Hotels Limited.
The hospitality group runs a 37 room Grand Bhagwati hotel in Ahmedabad and a 170 room five star hotel in Surat, among others.
On their part, hospitality players are trying their best to retain business through different measures.
For instance, Bhagwati Banquets has increased its focus on foods and beverages (F&B) in a bid to attract local guests.
