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Mumbai: Hotel rates revise in South Mumbai as demand for hotels increase in North Mumbai

A butterfly effect of sorts is being witnessed in the real estate market of Mumbai as one sees a shift of corporates from South Mumbai to other suburbs of Mumbai. While many have suggested that this trend is due to exceedingly high prices of commercial property in South Mumbai, a recent look at the hospitality sector will show how this genre of real estate is affected by such a change.

 

According to a report by the Federation of Hotels and Restaurant Association of India (FHRAI), a sharp fall in the requirement for hotel room at night has decreased in South and Central Mumbai as a number of corporates have shifted their operations in the new age Bandra Kurla Complex and other novel commercial spaces in Andheri. Some such companies which have shifted business operations include banks like Citigroup, Standard Chartered Bank, Deutsche Bank and companies including Morgan Stanley, Hindustan Unilever, Motilal Oswal, JP Morgan and UBS, to name a few.

 

Moreover, the supply of new hotel rooms have increased in the Northern part of Mumbai. Few hotels which, have opened up in the recent past include Sofitel and Trident in the Bandra Kurla Complex and Courtyard by Marriot, Holiday Inn and Hilton in Andheri as well as Westin in Goregaon. In comparison there was only one Shrangri-La in Worli was a new hotel in South Mumbai.

 

Such is a consequence of these factors of transfer of prominent business units from South Mumbai to other suburbs and the new alternative hotels in the north, that a price correction is seen in hotels within South Mumbai. For instance, in the contemporary market, Trident Hotel in Nariman Point charges Rs. 7000 instead of Rs 10,000 in January 2013. This hotel owned by Oberoi Realty offers a sea view. Another example is that at ITC Grand Central, which is located in Parel, an exclusive club room can be booked for only Rs 6,500.

 

This trend can be anticipated to continue as Taj Hotel, Sofitel Mulund and Taj Lands End are some other hotels coming up in the suburb while construction of the proposed Park Hyatt in New Marine Lines is long due in the future.

 

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