Published on : Thursday, March 2, 2017
The Indian hospitality sector has been a spectator of impressive growth curve over the last few years riding high on the rising number of meetings, incentives, conferences and exhibitions (MICE) in many Indian cities.
Industry analysts have attributed the ever increasing MICE events that include investor summits to a well-developed economic sentiment that is being harboured amid growing competition among the different states to achieve better ratings and attract more investments.
These events have directly enabled the profits in terms of room occupancies and returns.
For instance, the Hyderabad International Convention Centre (HICC) is the largest convention centre of India. It was managed by AccorHotels and it has already hosted over 800 events in the year 2016, averaging over 2 parallel events daily. Arif Patel who is the vice president (sales, marketing, distribution and loyalty), Accor Hotels said that the contribution of the MICE industry to the revenues of the hotels have risen by more than 14% in 2016.
Novotel Ahmedabad that belongs to AccorHotels witnessed the rates of its average rooms shooting up to Rs. 22,000.
During 2016, several investor summits organized by Odisha and Madhya Pradesh along with Incredible India Investors’ Summit had taken place. This year, West Bengal, Gujarat and Andhra Pradesh saw the largest investor summits. Achin Khanna, MD, consulting and valuation practice at global hospitality services consultancy HVS South Asia said that the fact that the senior executives of many companies are trickling into the cities from a week in advance for the 2 or 3-day spanning investor summit has been shooting up the occupancies.
Several large corporate are looking forward to establish a large number of convention hotels all across the country of late. For example, Mukesh Ambani’s Reliance Industries has planned to construct a 7 million square feet exhibition-cum-convention centre at Bandra-Kurla Complex in Mumbai. It is expected to be operational within the end of 2017.