The party will continue for Delhi hotel industry in the next five years, but the research arm of India's leading credit rating agency, CRISIL, has predicted that the good times may be getting over for Bangalore, Chennai, Hyderabad and Pune because of an impending over-supply of rooms.

The CRISIL Research study, quoted by

www.moneycontrol.com

Among business destinations, room demand growth in the next five years will be highest in Bangalore, Hyderabad, Pune and Chennai. But these cities will also have the bulk of room additions as well.

In sharp contrast to these cities, Delhi will continue to face a shortage of rooms over the next five years. CRISIL Research believes no significant addition in room capacity is expected in the Capital. As a result ARRs will continue their upward march.

But in Bangalore, Chennai and Pune, excess supply could result in occupancies dipping to levels as low as 50-55% by 2010-11. ARRs could fall as a consequence.

CRISIL Research estimates the hotel industry (including foreign players setting up hotels in India ) will be investing close to Rs 90 billion over the next five years to add fresh capacities in the premium segment. Of this, listed Indian players would account for approximately Rs 30-33 billion.

For the complete story, go to http://www.moneycontrol.com