Ahmedabad: After nearly two years of slow business amid pandemic-induced disruptions, the city’s hospitality sector is finally seeing a silver lining. Three new hotels – ITC Narmada, Vivanta by Taj and Sheraton – are expected to set foot and start operations in the Ahmedabad market in the next two years. These properties will add at least 465 room keys to the branded hotel inventory of Ahmedabad and Gandhinagar.
Top industry sources revealed that ITC Narmada is set to be inaugurated by June this year. The hotel will be a sprawling 291-room property situated along the Judges Bungalow Road, says the company’s website. ITC Narmada will be one of ITC’s 11 luxury segment hotels in India. Sources confirmed that the project cost is estimated to be Rs 600 crore, including the land cost.
Indian Hotels Company Limited (IHCL) is all set to launch its second property in Ahmedabad under its brand Vivanta by Taj. The company had taken over an existing hotel in Ahmedabad in July 2021 through a management contract and is scheduled to open this year. “The hotel at Sola Bhagwat crossroads is currently undergoing renovations after which it will be flagged as Vivanta brand and will open this year,” said a source. After the launch, IHCL will have three of its brands–Taj, Vivanta and Ginger present in the city.
Industry sources revealed that Marriott International is bullish on expansion in Gujarat as it is expected to come up with at least two more properties in the city, with its brands Sheraton and Grand Sheraton along SP Ring Road in Ahmedabad. The properties are presently in the construction stage.
The new properties have indeed instilled optimism in the hospitality sector. Since the pandemic, hotel occupancies have remained at an average level of 60%. During some months when the Covid-19 spread was faster, the occupancy levels plunged to as low as 20% in certain properties, suggest estimates by Hotels and Restaurants Association (HRA) – Gujarat.
“The hospitality sector has definitely not done well over the past two years. Business and corporate travel primarily drive the hotel room demand here, which had weakened sentiment due to Covid-19 pandemic. However, with fresh investments by businesses in Gujarat, GIFT City becoming a new IT and fintech hub of the state and companies here bullish on expansion plans, the demand for hotels is here to stay,” said Narendra Somani, president, HRA – Gujarat.
6 hotels launched since pandemic
Since the pandemic, six major properties were launched in Ahmedabad and Gandhinagar namely, Taj Skyline and Courtyard by Marriott – both at Sindhu Bhavan Road in Ahmedabad and Leela in Gandhinagar; Wyndham Hotels and Resorts, Grand Mercure and GIFT City Club both in Gandhinagar. These hotels added 1,100 room keys to the branded hotel inventory here. Over a three-year period, the hotel room inventory has surged from at least 1,500 to above 5,000, of which 3,400 rooms are in five-star hotels.
