The demand for hotel rooms in the city is set to outstrip supply in the next two years.
A report by real estate consultancy firm Knight Frank India Limited says Mumbai is all set to become the most attractive hospitality market in India, followed by Goa. It said the city would have 10,518 rooms while the demand would be for 13,007.
Currently, 23 new projects with a supply of 2,843 new rooms is expected to be added by 2013. These include rooms in the five-star, four-star and economy classes.
Shreenath Shastry, national director, Hospitality and Leisure, Knight Frank India Limited, said the move would translate to the highest occupancy levels in India.
“The occupancy levels would increase to 84% in 2013 from the current 68%,” Shastry said.
A majority of the rooms – 1,797 of the total new supply of 2,843 would come up in the western suburbs. These include Taj Sea Rock at Bandra with 450 rooms and Lemon Tree Hotel at Andheri-Kurla Road with 315 rooms.
Shastry says factors like strong gross domestic product (GDP), rising financial activities like banking, information technology and insurance are expected to boost the hospitality sector.
The only other state expected to perform well is Goa, where the demand is expected to grow by 7%.
But, the scenario in Delhi, Pune, Bengaluru, Jaipur, Kolkata and Chennai would be subdued, the report states. Mumbai has 9,852 rooms in its 69 operational hotels like the Taj, Hilton and JW Mariott.