The hotel industry in Pune is facing oversupply at the moment as many international players are looking at opening up their properties here.
Until three years ago, Pune hotels enjoyed almost a full occupancy but the scenario has changed with the change in market dynamics. According Pune hoteliers, the market currently sees a 30-40% downward revision in price.
“I think we need to wake up to the reality that there is definitely an oversupply in the city. The increase in demand that we expected is not happening at the moment. There are too many rooms available and that means the competition will increase and prices will come down,” said Jai Advani, Director, Estique Hotels.
Pune hoteliers said that the city’s infrastructure and growth rate which was supposed to go to peak levels, hadn’t really gone up. “So certain infrastructural constrains has brought down the city’s status world class city.
Hotels have come up but businesses have not,” said Darius Buhariwalla, GM, Hotel Sagar Plaza. “But I think we are going to bounce back,” he added.
Besides IT, the city has seen a growth in other industries such as automobiles, chemical and pharmaceutical.
Pune, being a hub for these industries sees a lots of foreign business travellers. However, the city is unable to attract more leisure travellers as it lacks supporting infrastructure such as resorts, entertainment parks and amusement parks.
“There has to be some attraction in the city apart from the business,” said Buhariwalla.
