BRICS Summit: Delhi luxury hotels see rate surge

Delhi's luxury hotels are experiencing a surge in room rates and a shortage of availability as preparations intensify for the upcoming BRICS Summit from September 12-13. Several prestigious properties, such as Taj Mahal, The Oberoi, Taj Palace, and Leela Palace, are reporting no rooms available for the event dates, or are quoting rates exceeding six figures per night. ITC Maurya and other properties are also charging exceptionally high tariffs, with starting prices for night accommodation reaching over Rs 2.3 lakh.

K B Kachru, President of the Hotel Association of India, notes that India currently has only 200,000-220,000 branded hotel rooms, which falls significantly short of the country's aspirations. The BRICS Summit, a significant event, is compressing demand across multiple days as delegates and visitors arrive early and extend their stays, exacerbating the pressure on room inventory in central Delhi.

This could lead to higher accommodation costs for tourists, business travelers, and families with pre-planned visits to the capital.

International hotel chains, such as Wyndham Hotels & Resorts, report increased demand for Delhi-NCR due to the summit. Ramada Encore by Wyndham in Dwarka Expressway shows occupancy rates of 65% for September 12-15, surpassing broader market demand. LaLiT New Delhi is ready to welcome international guests, including delegates from South Africa, Burundi, and the UAE, contributing to the hotel's diverse international presence during the summit.

Managing Director & COO of Radisson Hotel Group, Nikhil Sharma, expects strong demand as the summit approaches, with more travelers likely to make last-minute bookings. The summit is expected to significantly benefit the luxury and MICE segments, which thrive on concentrated demand for rooms, meeting spaces, and other hospitality services.

Delhi's hotel market sees the summit as a major demand catalyst, particularly in the upper market where room inventory is limited and concentrated in key business and diplomatic districts. However, hotel tariffs and room availability remain dynamic and can change rapidly based on bookings, cancellations, and inventory released by properties.