Bengaluru hotels see full occupancy, room rates triple as Aero show, G20 drive up demand

Mohan added that the most preferred choice of location for hotels is in north Bengaluru. “It starts from Outer Ring Road, Airport Road, and trickles down to Yeswanthpur, and the CBD (Central Business District) area.”

For the Aero India show, most bookings will take place in the Central Business District (CBD) area as a cluster of five-star hotels is located there, said PC Rao, President of Bengaluru Hotel Association — an umbrella organisation of more than 2,000 hotels across the city.

“Some five-star hotels have signed MoUs (Memorandum of Understanding) with the government,” he said.

Sources privy to the development said the Indian government has made about 70-80 bookings for expats at a posh hotel in south Bengaluru. The bookings have been made for 7-10 days during the Aero India show.

High cost, low availability

“Budget hotels like three-star hotels are having rates of Rs 10,000-12,000 (per room), which normally costs Rs 5,000-6,000. So, room rates have doubled, and tripled, and during the Aero India show it will go higher. I think, most hotels will be sold out in February,” said the executive of a top hotel.

Besides, prices for the prime dates have risen by 50-100 percent, said Ashley James, General Manager, Angsana Oasis Spa & Resort.

Blackout dates in Bengaluru for hotels include India Energy Week, which is from February 6 to 8, and Aero India show from February 13 to 17, among other events.

Hotel bookings in Bangalore have gone up by 40 percent, and there has been a 70 percent rise in hotel tariffs between January and February, said Nishant Pitti, CEO and Co-founder of EaseMyTrip.

Renaissance Bengaluru Race Course Hotel, a property in the heart of the city, has been enjoying high occupancy rates on most days since the start of February, thanks to a slew of events being held in the city, said Nihal Kurian, Director of Sales and Marketing of the hotel.

“The hotel is sold out for most of these dates. Around 50 percent of our business currently is derived from these events. Hotel prices are approximately 40 percent higher during this time,” he added.

Typical booking rates for the period February 13 to 17 are between Rs 20,000 and Rs 25,000, said Saurabh Kumar, General Manager at Oakwood Premier Prestige, Bangalore. “Compared to the average cost over the previous six months, prices are currently higher at 22-25 percent.”

The hotels hosting guests for these events are expected to see a jump in average room rates (ARRs) between 80 percent to 100 percent, said Vineet Verma, Director of Brigade Hospitality.

“We are booked to capacity most of the days, with the average length of stay being 7-10 nights,” noted Vivek Sharma, General Manager at Bengaluru Marriott Hotel Whitefield.

Guest list

Senior government delegates of G20 have started checking-in at hotels around the Legislative Assembly, said Kumar of Oakwood Premier Prestige. “The booking time for Aero India now has a shorter lead time and we have been receiving queries from the past week.”

For G20 meetings, it is ministerial movement, said Rajan Malhotra, Commercial Director, Conrad Bengaluru. “As for IEW, energy companies like IOCL and natural gas companies like ONGC have taken a number of rooms in hotels.”

Due to the high-profile guest list at hotels in Bengaluru, security remains tight. “We are keeping security on high alert to watch for any suspicious movements, and giving the squad frequent training,” said Oakwood's Kumar.

The hotel executive cited above said that guests and staff have been given authorised badges without that which no one is allowed inside.

“Security is of prime focus due to the dignitaries, who will be attending the G20 meet. A series of events are being held over four-five days, and these are big events. Finance ministers of various countries will be present during the G20 meet,” the official said.

Uptick in business

While sentiment was getting a little tepid due to the Russia-Ukraine war and the chatter of recession, events including G20, Aero India and other conferences in the city have lifted the mood, said Vinesh Gupta, General Manager at The Den Hotel, Bangalore. “We see that the average growth for the hospitality and tourism business is in the range of 20-22 percent.”

The sudden surge in bookings and demand are mainly due to high-profile events, including the IEW, G20 meeting and the Aero India show taking place in the city simultaneously, said Rajnish Kumar, Co-founder & Group CPTO of ixigo.

“The city is facing high demand. Most hotels are at high occupancy levels. So are we. Luxury segment hotels closed occupancy in the range of 65-68 percent in January, and for February it will be 80 percent,” said Conrad's Malhotra.

Average occupancy for hotels in February will be over 85 percent, said Verma of Brigade Hospitality.

Hotel bookings is four times higher in February as compared to January 2023, pointed out Prahlad Krishnamurthi, Chief Business Officer at Cleartrip.

Kurian of Renaissance Bengaluru Race Course Hotel said that they expect a 25 to 30 percent increase in hotel revenues for this month.

“We expect 8 to 10 percent increase in revenue in February,” said Oakwood’s Kumar.

On the other hand, Conrad's Malhotra said that business could have been better this February. “Demand has slowed down in the last few days because of slightly lower participation at the G20 meet. Business would have been better this February compared to pre-Covid days, but the Aero show has also not picked up, as it did in pre-Covid times. Participation has gone a little down. Hence, business will be the same, as it was in February 2019.”