Hyderabad hotels rooms are second most expensive in the world

Costlier rooms can mean bad news for business. Well, if one goes by the news that came in today about expensive hotel rooms in major cities across the world, then Hyderabad has to be careful.

According to a Washington datelined article by Chidanand Rajghatta, which was published in The Times of India, hotel rooms in Bangalore and Hyderabad are costlier than Paris, London.

According to Rajghatta, the US declares Bangalore to be more expensive than Paris, London, and Tokyo when it comes to accommodating its diplomats. In a dubious upgrade, the US State Department’s per diem for accommodation in two of India’s premier “boom’’ cities is among the highest in the world: $299 for Bangalore and $268 for Hyderabad.

In comparison, the per diem for accommodation in Paris and London is $261, and for Tokyo, widely regarded as the world’s most expensive city, it is a mere $189. Evidently, it’s just the shortage of hotel rooms and the rising costs thereof in India’s boom cities that has persuaded Uncle Sam to pony up top dollar for its mandarins. When it comes to meals and miscellaneous expenses, the Indian cities are still relatively cheap.

Bangalore is $299 plus $92 per day (for food and miscellaneous expenses) for a total of $391 and Hyderabad is $268 plus $81 ($349). In contrast, the tab for Rome is $299 plus $168 ($467) and for Paris it is $261 plus $142 ($403).

Hyderabad has about 3000 plus rooms in star categories, ranging from one to five stars. The city needs to add in another 2500 rooms in the business category in another two to three years. Once these rooms are added and the occupancy rates stabilize, the average room rates (ARR) will come down. Then US government can bring down the allocation amount for its personnel by a peg or two.

The biggies of the Asian Development Bank (ADB) will meet at Hyderabad in May 2006. This mega event will test the city’s competence to accommodate the 3000 plus delegates who are expected to attend the event. With India’s most modern and biggest convention center, booming IT, ITES and pharma and biotech sectors, the twin cities of Hyderabad and Secunderabad will need to scramble up enough rooms or it will go the Bangalore way.