Buoyed by consistently high occupancies nationwide (Hyderabad clocking the highest occupancy of 85%, Pune 84%) and nationwide ARRs breaching Rs 6,556 in 2005-06, hotels are looking, this September onwards, for a 20% increase in rack rates.

This is a significant increase over the standard of 8-10% usually expected this time of the year. Even the Credit Rating Information Services of India Limited (CRISIL) estimates that ARRs are expected to move up by 20% in the premium segment hotels in the four metros as well as Bangalore, Hyderabad, Pune, Ahmedabad, Jaipur, Goa, Agra and the southern state of Kerala.

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