With the mid-market hotel sector yet to mature, hotel room rates in India remain high as capacity races to catch-up and meet demand. As a result many companies are electing to develop wholly-owned corporate residences rather than paying extortionate rates at luxury hotels. “Average room rates are going high and the budget and mid-segment market is very low, and this has boosted this trend. Some corporates have created rooms inside their campuses, while some like Vodafone, have taken over big mansions and converted them into guest houses,” Manav Thadani, Managing Director of HVS India told Business Standard newspaper.
International companies such as ITC, Deutsche Bank and Standard Chartered must accommodate employees when travelling on business. As a result of escalating demand for this service in India, corporate residence management firm Siesta Hospitality has seen its client based increase eight-fold since 2005. Taking ownership of a guesthouse has the potential for massive savings as paying hotel prices can push costs up by 50% in some cases.
Comments are closed.