Delhi luxury hotel market has been experiencing a major surge in room prices as the capital gears up for the 18th BRICS Summit on September 12 and 13. International leaders, senior officials and large delegations in the country have created huge demand for luxury accommodation, with room prices at some five-star hotels going up to lakhs of rupees.
More than 3,000 hotel rooms have been reserved across Delhi for BRICS delegates, representatives of partner countries and top officials from international organisations, according to local media. Some hotels have dramatically upped the price of luxury rooms to match that of other hotels, and even some of the high-end properties are already not available during the summit.
Luxury hotel rooms go for extremely high prices
The Leela Palace New Delhi is one of the most striking examples. Room rates have climbed as high as ₹10.78 lakh for a night, which is about ₹9.14 lakh for the room and ₹1.64 lakh in taxes. The hotel's website was also showing the property closed on September 11.
Another major luxury property, ITC Maurya, is charging around ₹2.5 lakh per night during the high-demand period. The hotel is hosting Russian President Vladimir Putin and has prepared a luxury thali for him.
At The Lodhi, rooms have been advertised at ₹1.2 lakh per night, and Le Meridien New Delhi rates are close to ₹1 lakh per night.
The dramatic rise shows how big diplomatic and political events can have a huge effect on hotel prices in cities hosting international summits.
International leaders add to hotel demand
The presence of world leaders and senior officials has further increased demand for Delhi’s premium hotel inventory.
Le Meridien New Delhi is among the properties housing prominent international guests. United Nations Secretary-General Antonio Guterres, as well as the presidents of the Asian Infrastructure Investment Bank and New Development Bank, are staying at the hotel.
At the property, delegations from Uganda, Nigeria and Malaysia also booked rooms, adding to the pressure on accommodation.
The concentration of diplomatic delegations means that luxury hotels are not only for heads of government but also ministers, officials, security personnel, advisers and other members of international teams.
Several five-star hotels sold out
The demand is also reflected in the availability status of several prominent Delhi hotels.
Taj Palace, New Delhi, where Chinese President Xi Jinping is expected to stay, is said to have no availability during the summit. Oberoi New Delhi has also been listed as sold out and officials from Brazil, Kazakhstan, Ethiopia and Indonesia are said to be staying there.
With multiple high-profile delegations present in the capital at the same time, Delhi’s luxury hotel inventory has been under considerable pressure.
BRICS Summit creates accommodation pressure
The rise in hotel prices highlights the larger economic impact of major international events. Although the BRICS Summit is expected to attract significant diplomatic attention, the influx of visitors is also good for the hospitality sector with rooms, food, transportation, security services, and other premium facilities.
But for many of Delhi's regular travellers who are going to the summit, the situation could be difficult. Lack of accommodation and incredibly high tariffs may make finding affordable accommodation difficult, especially around central Delhi and in the vicinity of some of the most important diplomatic and government locations.
The unusual hotel rates are thus emerging as one of the notable side effects of the BRICS Summit, underscoring the enormous logistical requirements involved in hosting world leaders and large international delegations.
As the two-day summit starts on September 12 and 13, Delhi’s five-star hotels are experiencing high demand and some are now at prices rarely seen under normal circumstances.
