Winter peak, wedding rush, VIP visits, amid IndiGo crisis sends Delhi hotel rates spinning

Delhi hotel prices turn volatile.

Winter travel peaks, heavy wedding rush and high-profile visits—layered over the IndiGo flight crisis—have sent hotel room tariffs spiralling in Delhi.

Weddings and winter travel demand are triggering volatility in hotel rates in the central part of Delhi while the IndiGo crisis is rocking room prices in properties close to the airport.

Wedding and winter demand is spiking prices for hotels in Central Delhi like the Leela Palace where a Maharaja category room, the most premium room, is costing as much as Rs 6-7 lakh including taxes versus around Rs 5-6 lakh in November.

At top hotels, room rates are up by Rs 50,000-60,000 versus last month mostly due to the peak winter and wedding season with many families booking the entire hotel on some dates. Hotels across categories call December their highest revenue generating month.

Rooms at Taj Palace Delhi are available for as high as Rs 10 lakh a night for a suite.

Also read: Check-in conundrum: IndiGo crisis fuels mass hotel cancellations, last minute room shuffles

Prices also doubled in many properties due to the VIP movements in the city. Russian president Vladimir Putin had visited India last week, Microsoft CEO Nadella had started his India visit in Delhi on December 10 and on the same day Amazon held its Smbhav Summit.

Surendra Kumar Jaiswal, President, Federation of Hotel & Restaurant Associations of India (FHRAI) noted that when global Chief Executive Officers (CEOs), major tech delegations, investor groups, or Meetings, Incentives, Conferences, and Exhibitions (MICE) events are in the city, the incremental demand falls on a market already operating at 76–80 percent occupancy in the luxury segment.

Even a marginal surge in bookings pushes hotels into dynamic pricing. "In such periods, last-available-room (LAR) rates typically rise by 10–25 percent, and in certain micro-markets like Aerocity or Chanakyapuri, the increase is over 30 percent, especially for suites and club categories," he added.

During major events including high-profile state visits, large conferences/MICE, big trade shows, and peak wedding dates, luxury and business hotels in Delhi NCR often book out well in advance and show sharp tariff increase, said Taran Deep, Director, Silkwn Weddings, a luxury wedding company.

Also read: Rooms @ 40k: Delhi hotel rates triple amid flight chaos, Putin visit and room shortage

In Aerocity hotels, the major movement in prices is due to the IndiGo crisis.

"The wave of flight cancellations has had a direct effect on hotel pricing. Around Delhi airport, rates have risen by around 9 percent on average, with some properties now touching nearly Rs 1.5 lakh a night," said Dr Anshu Jalora, Founder & MD, Sciative Solutions.

The sudden rush compressed inventory and most hotels are operating near full capacity, leaving minimal buffers to absorb additional demand, Jalora added.

For example, Pullman New Delhi Aerocity hotel prices now are at Rs 24,000 versus their usual rate of Rs 16,000. They are also fully booked until December 21.

On the other hand, many properties are also seeing a wave of cancellations as many guests were unable to reach hotels on the reserved dates due to flight cancellations.

Many hotels have recorded room cancellations by as much as 15 percent.

While the last minute booking rush due to the IndiGo crisis is offsetting the impact of room cancellations, hoteliers in key markets like Delhi are strained due to delayed check-ins, disturbed housekeeping schedules, modified meal plans, along with challenges in managing meeting room timelines.

Jaiswal also pointed to Delhi’s inadequate hotel.

He cited FHRAI–Centre of Excellence for Research in Tourism & Hospitality (CERTH) which estimates that Delhi has approximately 17,000–18,000 branded and organised rooms. The broader NCR region, including Gurugram, Noida, Aerocity, and adjoining areas, brings the total to 32,000–34,000 rooms.

"For a city that manages year-round government activity, international summits, corporate travel, weddings, and major conventions, this remains significantly below optimal levels. Compared to Asian peers, Singapore, Bangkok, Tokyo, Beijing, the gap is stark, with Delhi having four to eight times fewer branded rooms despite comparable air traffic and economic activity," he said.

It is this imbalance that directly contributes to higher pricing and volatility during peak periods, Jaiswal noted.

According to Rajiv Mehra, General Secretary, Federation of Associations in Indian Tourism & Hospitality (FAITH), green field additions take time hence, the room rates at least till the next few months will remain at an elevated level.

India’s branded hotel sector recorded an Average Daily Rate (ADR) growth of 8.3 percent and a RevPAR increase of 12.1 percent in FY 2024–25, noted KB Kachru, President, Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group, citing Hotelivate data.

Data from HVS-ANAROCK shows that Delhi, which has the highest presence of leading hotel chains in the country, achieved occupancies of around 78–80 percent in April 2025—among the highest in India—while ADRs crossed Rs 10,500, positioning it as one of the country’s most premium hotel markets, Kachru added.

"However, industry forecasts indicate that while hotel room supply is expected to grow at a Compound Annual Growth Rate (CAGR) of 5–6 percent between FY25 and FY28, demand is projected to rise faster at 8–10 percent," he said.

Over the long term, this widening demand-supply gap is not conducive to sustainable sectoral growth, Kachru added.

"To remain competitive as a global gateway city, Delhi needs at least an additional 8,000–10,000 quality rooms over the next decade," Jaiswal said.