Hotel industry to be constrained in near term: study – DVB-T2 Digital Receiver – ISDB-T Receiver Manufacturer

“In the near term, we expect marketwide average rates andoccupancy levels to remain constrained as new supplies open up in2012 and 2013, with a high proportion of new rooms in the luxuryand upper upscale segments,” says the study. “However,the adverse impact is expected to be short-lived with significantcommercial and industrial developments being planned across thecity,” it added. Of the upcoming new rooms, almost 35 per cent of the rooms inChennai are expected in the luxury segment while 25 per cent of theupcoming supply would be in the midscale and economy segment.Serviced apartment and upscale segments would contribute around 4per cent and 3 per cent respectively. The occupancy levels, which increased to 68 per cent in 2010-11compared to 64 per cent in 2008-09 has been in a decline during thefirst three months of 2012. DVB-T Digital Receiver

For the year-to-date 2012, according tothe report published in April 2012, the occupancy levels registereda decline of 300 basis points to reach 65 per cent, owing to theincrease in the supply. The average daily rate (ADR) for rooms remained stable during theperiod, around Rs 6,100. The ADR saw a decline in 2010-11 when theoccupancy levels grew to Rs 6,100, almost 12 per cent down from theRs 7,000 ADR in 2008-09. The revenue per available room (RevPAR) in Chennai reached Rs 4,400in 2008-09, and later started declining as the demand conditionssoftened and new supply entered market. DVB-T2 Digital Receiver

“However, with acontinuous addition of branded supply, the market has witnessed adecline in average rates. Because of this, there has been an 11 percent decline in RevPAR since 2008-09,” says the report. The report also states that the lodging demand in Chennai isdominated by the business segment, contributing 70-75 per cent ofthe total demand, while meetings, incentives, conferences andexhibitions (MICE) occupy 10-15 per cent and leisure 5-10 per centof the demand. The metro, which is home to industries such as manufacturing,automobile, auto-ancillaries, IT and IT-enabled Services andshipping, has the potential for greater business demand, it added. ISDB-T Receiver Manufacturer

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