Ayodhya hotels earn `record’ Rs 20 cr in three days; hoteliers say it Ram ji ki kripa

While there are 150 mainly budget hotels in Ayodhya, The premium hotel chains are gearing up to set up their units.

Ayodhya, the new spiritual nucleus of India, has experienced an unprecedented boom in its hospitality sector. To be sure, there would be a huge influx of people in the run-up to and for the consecration of the Ram temple was given, and a steady stream of visitors was expected after the event. Even so, in the first three days following the consecration of the temple, hotels in the temple town collectively pulling in almost Rs 20 crore is astounding.

“It is a record for Ayodhya as in the first three days—January 22 to January 24—the hotels of all shapes and sizes in Ayodhya have earned anything between Rs 15 crore and Rs 20 crore,” Sharad Kapoor, president of the Faizabad Hotel Association (FHA), told Moneycontrol on Friday.

He attributed this success to "Ram ji ki kripa, (Ram’s mercy)", emphasising that such a volume of business had never been witnessed even during traditional mela times when again over 1 lakh devotees visited Ayodhya.

On the first two days post-Pran Pratishtha or consecration on January 22, over 7.5 lakh pilgrims visited Ayodhya to have a darshan of Ram Lalla, as the idol at the temple is known as, while on January 22 itself, around 50,000 people visited Ayodhya. And all this despite temperatures plunging to 2.9 degrees Celsius.

The Ayodhya administration claimed that over 5 lakh devotees visited Ayodhya on January 23 and over 2.5 lakh devotees the next day.

The numbers were far higher than what hoteliers and even the Shri Ram Janmabhoomi Teerth Kshetra Trust, which oversees the temple, had estimated. The initial estimate had pegged daily visitors at only 1 lakh.

Anil Agarwal, the FHA secretary, clarified that not all who came were guests of the temple town’s hotels. “People from the neighbouring districts came in the morning and left by evening after having a darshan. Still, I can say that hotels in Ayodhya had over 60 percent occupancy on January 23 and 24,” he said.

The best business the local hotels had was on January 22, when all hotels had put up ‘No Vacancy’ signs. Realising the demand, many hotels increased room rent by four to five times. Kapoor claims that one premier hotel in Ayodhya charged 1.5 lakh for a suite for a night against the normal rate of Rs 10,000 before taxes.

“Yes, many hotels increased the rent of the rooms by many times because there was demand. This is the principle that if there is demand, prices go up—even the government follows that,” Kapoor, quipped. “Indian Railways and airlines have flexi fares. They charge commuters depending on their need… The same thing happened with hotels in Ayodhya.”

Hoteliers believe that the rents of the rooms will ease but not by much at least till Ram Navami, which falls on April 17. Ananya  Sharma, a local tour operator, said they are getting requests for booking in mid-April, coinciding with the day.

“The weather would be pleasant at that time and as the school exams would be over, a surge of devotees is expected at that time,” she said.

The hitherto sleepy town is poised for greater activity in the hospitality segment. While there are 150 mainly budget hotels in Ayodhya, The premium hotel chains are gearing up to set up their units. Marriott International, Sarovar Hotels and Resorts, Wyndham Hotels and Resorts, and the JLL Group are also investing in Ayodhya, as is Park Inn by Radisson.

Other major hotel chains too have recognised Ayodhya's potential. Indian Hotels Company Ltd (IHCL) of the Tata Group has earmarked two projects in Ayodhya featuring their Taj Hotels and Vivanta brands.

"We see Ayodhya as an emerging hub and our projects reflect our commitment to contribute to the city's growth. The historical and spiritual significance of Ayodhya makes it a compelling destination," said Ravi Singh, a representative of IHCL.

But it is not as if existing players will be crowded out. Arun Agarwal, owner of Hotel Abha Palace, said: "Around 3,500 to 4,000 rooms are available. This is far less than the present requirement."

“In the coming days, Ayodhya will not only be a spiritual centre but also a hub for cultural and economic activities. The hospitality industry is gearing up to play a pivotal role in ensuring a comfortable and memorable stay for visitors," said Garish Oberoi, president of the Hotel and Restaurant Association of Northern India, who envisions a promising future for Ayodhya's hospitality companies.