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Posted: Monday, August 25 2008. 11:37

Bangalore Hotels see Fall in Occupancy

Bangalore may see a decline in occupancy and room rates as companies in the US cut costs on travel and hotels amid a credit squeeze, according to Leela Venture, India's third largest hotel company

The hotel plans to cut its dependence on revenues from its Bangalore property by expanding in other markets, according to Onno Poortier, President of the company. Bangalore project amounts to half the total profits of the hotel, based on 2007 figures.

The company now plans to more than double room capacity in three years as it bets on an increase in business and leisure travelers to the country. The luxury hotel chain plans to raise its capacity to the present 1,140 rooms to 2,580 rooms by 2011 according to a news report in Business Standard.

It plans to add six hotels by 2011.On the cards are plans to open hotels in Gurgaon, near New Delhi, in November, Udaipur and Chennai in 2009, New Delhi in 2010 and Hyderabad and Pune in 2011. The company already runs hotels and resorts in Bangalore, Mumbai, Goa , and Kovalam in  Kerala.

       

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