- Delhi hotels expect a boost from the AI IMPACT Summit on Feb. 16–20.
- Demand-supply gaps in the luxury and upper-upscale segments are driving dynamic pricing.
- Luxury and upper-upscale hotels are sold out or nearly full, while others charge high rates.
DEMAND-SUPPLY GAPS, THE AI IMPACT Summit and the wedding season are driving fluctuations in Delhi hotel rates after a slow start to the year. Hoteliers are now counting on the AI summit, scheduled for Feb. 16 to 20, to boost business.
A night at The Imperial Hotel on Feb. 16 will cost $2,175 plus $392 in taxes, The Economic Times reported, citing rates published on a popular travel booking platform. Luxury and upper-upscale hotels are sold out or nearly full, while others are charging high rates.
The Hyatt Regency Delhi also charges $552; The Leela Palace Delhi $861 and the Shangri-La Eros $983, while it is sold out on Feb. 18, the Times reported.
“We are expecting full occupancy on select dates, driven by high demand from city events and the AI summit. We are nearly sold out on Feb. 19 and 20,” said Vineet Kapoor, hotel manager of The Lalit Suri Hospitality Group in New Delhi. “There is strong demand across all room types, including suites. We will be hosting several international leaders and delegates during the summit.”
K.B. Kachru, president of the Hotel Association of India, said a gap between demand and supply in the luxury and upper-upscale segments before large events drives dynamic pricing in Delhi.
“There is a dramatic fluctuation in rates, ranging from $200 for an upscale hotel to over $1,100, in the luxury segment,” a hotelier familiar with the matter said.
Hoteliers said December and January were slow in Delhi compared to other markets.
“According to industry estimates, branded hotels in Delhi saw RevPAR growth of 10 percent compared to 20 percent in the fourth quarter for markets such as Hyderabad and Bengaluru,” said a hotelier from a luxury chain. “Business was affected in December and January by high pollution levels. Companies also appear to be scaling back GCC expansion here due to these concerns. We saw a dip in international visitors, particularly from the U.S.”
India’s tourism ministry reported that Gujarat ranked third among Indian states for foreign tourist visits in 2024, attracting 2.274 million visitors. International tourist arrivals to India rose to 20.57 million, up 8.89 percent from the previous year.
