Hotels in top Indian cities are charging less for rooms than last year primarily due to fresh supply of hundreds of hotel rooms while there was no corresponding surge in demand.
Room rates for hotels in Delhi, Mumbai, Bengaluru, Chennai and Hyderabad this winter season are 5-20% less than last year.
"Many markets have seen new supply of hotel rooms, which is putting pressure on room rates," Vivek Nair, vice chairman and managing director at The Leela Group and president of the Federation of Hotel & Restaurant Associations of India, said.
Room rates at luxury hotels in Chennai have dropped by 10-15% compared to last year because two large luxury hotels have come into the market. In Bengaluru, room rates have slipped by 5-10% while Hyderabad has performed the worst with a 20% drop in rates over last year.