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Oversupply, Under Occupancy Will Sink Indian Hotel Profits

ImageCrysil, one of India’s leading research firms reported that the demand for premium segment rooms is expected to fall by 11% in 2008-2009 compared to the prior year, while the inventory of these rooms is expected to grow at a compound annual growth rate (CAGR) of nine per cent from 2007-2008 through 2011-2012 across 12 major cities. Overall, occupancy rates are expected to fall 62%, which would be the lowest occupancy rates in a decade.  

The 12 major destinations included in Crysal’s research are Agra, Ahmedabad, Bangalore, Chennai, Goa, Hyderabad, Jaipur, Kerala, Kokata, Mumbai, NCR, and Prune.


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