Seven five-star hotels will be opening in Chennai in 5 years. That is because the IT and manufacturing industries have driven demand for hotel rooms, reports CNBC-TV18.
Chennai is hot for the hospitality industry, even as hotels struggle to grow in other metros. Some of the biggest names in hospitality will be in Chennai by 2011.
“Chennai has been a sleeping giant. We have very good infrastructure and the investment climate is very good and because of this, Chennai is expanding very fast,†said Nisha Purushotaman, MD, Empee Hotels Ltd.
The Leela will put up a 380-room hotel, investing about USD 90 million, by early next year. The Empee Group, Hilton International, the Welcome Group’s Grand Chola, J W Marriott and Taj GVK will also open in Chennai.
But is there room for all these hotels?
“Chennai has always been way behind the competition. It is only now, that it has woken up to the reality, that we do need all of them. That is why you see a surge of hoteliers coming here,†said Sanjay Chugh, VP-Transaction Management Service.
Chennai’s occupancy rate is about 80% and compared to the other metros, the average room rates are lower, with a room costing about Rs 8,000-10,000 a night. Analysts say this is contributing to the hospitality blitz in Chennai.
