Hotel industry gets major boost

Vijayawada: The bifurcation of the state and capital construction works in Amaravati have given a big boost to the hotel industry in Vijayawada city. The small and medium range hotels and lodges improved the occupancy rate impressively from shifting of employees from Hyderabad to Vijayawada.

Similarly, the frequent visits of VIPs including MPs, MLAs, higher officials from various districts, official teams from various states and countries and tours of capital construction technical staff increased the demand for two-star and three-star hotels.

Already, the MLAs apprised their problem in the House as they are also finding it difficult in getting accommodation in hotels, especially during the marriage season as there is a huge demand.

As a result, several reputed hotel groups started construction of their new hotels in the city and some three-star hotels are expanding their premises by purchasing adjacent sites. Similarly, some old private buildings are also being transformed into new hotels in various areas across the city.

According to Andhra Pradesh Hotels Association, earlier, the city hotels had above 50 per cent occupancy rate only. Now, the occupancy rate has increased up to 90 per cent. From the increasing demand, some other new hotels are also being planned to establish their ventures in the city.

Now, the commercial establishments, including the hotel industry, may get some more benefits from the proposed developments, said Andhra Pradesh Hotels Association president M Srinivasa Babu. After shifting of the administration from Hyderabad to Vijayawada, the hotel industry has got major benefit, he said. He also said the city business community would get huge benefits similarly in the model of Hyderabad in near future.

Srinivasa Babu recalled that the people of Andhra Pradesh used to visit Hyderabad and stay in hotels to complete several government and business-related works. Now, the people of 13 districts of the state were coming to the city and staying in hotels only, he added. Moreover, they generally go for shopping and spend money as part of the city visit.

As a result, the city businessmen would be making huge benefits, footwear shop owner D Murali said. He said that the shops in the city get business from visiting people from outside the city only. One senior official said the state government had signed MoUs with various reputed hotel groups worth Rs 3,500 crore.

As many as seven multi-national projects are also coming up near Amaravati capital, including Vijayawada city. At present 12 floors of the Novotel Group are under construction and some big private buildings have also been converted into hotels such new buildings are almost ready for inauguration.

The city’s popular ‘Manorama’ is being extended by incorporating the nearby building site, while Ilapuram had also gone for expansion and started Mini-Ilapuram by occupying nearby building. The trend may continue for some more years from increasing demand, said hotel owner P Ramu.

By Patibandla Srinivas