Formule1 checks in@gujarat
The hotel group expects Ahmedabad to follow the Pune hospitality sector model wherein the supply will exceed the demand of hotel rooms in the city.
Formula 1, the budget brand of Accor Hospitality, recently opened up for business on SG Road, Ahmedabad. Featuring 132 rooms and three F& B outlets, the hotel is offering an inaugural rate starting at
2499. To record an average of 55-60 per cent occupancy in the first operational year, the property is actively working with OTAs and preferred travel trade partners along with its own sales team.
According to Ketan Parmar, General Manager, Formule1 Ahmedabad, the city has recorded a growth of 10 per cent in room occupancy levels this year as compared to 2011. However, the demand might go down due to increase in supply of hotel rooms next year.
Comparing Ahmedabad with the city of Pune, Parmar said, “The city of Ahmedabad is coming up as an attractive business capital and thus loads of corporate travellers’ movements are happening. With this, the demand is growing a lot in the branded budget hotel category and thus, we fit in this segment perfectly with the right product for the right market. On the other hand, hotel operators have realised the need of budget hotels in a Tier II city like Ahmedabad and therefore there are many projects coming up in next one to two years. We will record a good demand in next six to eight months wherein there will be one or two more budget hotels opening in the city. Moving ahead, in next one year, there will be more than five budget properties opening for business, thus diluting the demand in the market with required supply.
We will adjust our room prices as per the market conditions and are confident to sustain in profitable manner as there is room for every hotel to grow.”