Is Pune becoming a city of too many hotels, too few visitors?

Among the sectors high on the comeback of the economy is the city's hospitality sector. The rush of announcements of high-end hotels opening in the last few weeks has, however, created a situation where the availability considerably exceeds demand, and occupancy levels face a decline.

For the record, international hospitality chains Marriott and Hyatt opened hotels in the last couple of months in the city to raise the number of keys by about 650. That was in addition to the 800-odd high-end hotel room inventory shared by Taj Vivanta (formerly Taj Blue Diamond), Le Meridien, Sun-n-Sand, Radisson and Pride hotels.

More star category hotels are in the offing as Ista, promoted by IHHR hospitality group, and Holiday Inn are waiting to formally open their doors.

Observers say the end result of this action will raise the city's room stock close to 2,400, thereby creating an oversupply situation.

Shreenath Shastry, national director, hospitality agency, Knight Frank India, said, "Our research findings indicate that currently in Pune, there are around 20 hotels in upscale, midscale and economy segments which sums up to a total room inventory of about 2,277. By the end of 2013, a total of 15 new hotels consisting of 3,502 rooms will become operational across all three segments."

Read more: Is Pune becoming a city of too many hotels, too few visitors? - The Times of India http://timesofindia.indiatimes.com/city/pune/Is-Pune-becoming-a-city-of-too-many-hotels-too-few-visitors/articleshow/7300514.cms#ixzz1BPSeqrYE