Many of the dozen or so hotels adjacent to the Delhi airport that are looking to open soon may offer rooms at up to half the current rate charged by existing properties nearby to drum up business, said executives and analysts.
This could also mean that the occupants of the 43-acre hotel district set up by Delhi International Airport Pvt. Ltd (DIAL), known as Aerocity, will find it difficult to break even initially, they said.
The cheapest room at the Radisson Blu, which is the five-star hotel nearest the Delhi airport, has a rack rate of Rs.8,750 a night, excluding taxes.
Douglas Martell, vice-president, operations, South West Asia, InterContinental Hotel Group, which runs the Holiday Inn chain in the country, expects its Aerocity property to open by the end of the year.
“Our prices would range from Rs.4,500 to Rs.5,500 excluding taxes. With taxes, they might go up to Rs.6,500. Considering our efficiency, we are hopeful that we will become profitable in six to eight months.”
Martell said the hotel expects 40% occupancy to start with, but this also depends on when the other Aerocity hotels open.