West Asia War Threatens Hotel Occupancy in GCC Hubs Hyderabad Bengaluru

The ongoing war in West Asia has hit hotel occupancy rates in Global Capability Center (GCC) cities such as Bengaluru and Hyderabad, as most foreign travelers visiting India fly from aviation hubs such as Dubai, Abu Dhabi and Doha.

« The war in West Asia has affected the hotel business. Foreign tourist arrivals have affected, which in turn has affected the occupancy rate of big boxes in major cities, » said Shwetank Singh, President and CEO of Chalet Hotels.

« The number of people flying through the Middle East is very high. If I look at our portfolio, 40 percent of the business comes from foreign tourists. And the big boxes in big cities make up about 60 percent of our portfolio. The impact is clear, » Singh said. « These travelers spend more time in the hotel and stay longer. They travel with the congregation. »

« Although the leisure resort business continues to be generally good, we have lost more than we have gained. Occupancy is down 10% in March. Bengaluru and Hyderabad have been very deeply affected due to GCC-led tourism, » explained Singh.

Chalet Hotels expects double-digit growth in FY27 if things normalize.

Rikant Pittie, CEO and founder of EaseMyTrip, said that international travelers have become more cautious, booking windows have shortened and preferences have shifted towards flexible plans, but the underlying demand for quality hospitality experiences remains stable, somewhat affected by the geopolitical situation.

« We are seeing some recalibration rather than a sharp decline in luxury hotel bookings in metro cities in March. While geopolitical changes in West Asia have affected certain segments of international travel, overall demand has remained relatively stable, supported by domestic tourists and business travel, » he added.

High airfares also affect demand. « Flight prices have increased with fuel surcharges and operating costs. Domestic routes have increased by approximately 5-10%, while short-haul international routes have increased by approximately 20-30%, » Pittie said.