BRICS rush sends Delhi luxury hotel rates soaring past Rs 2 lakh as rooms vanish ahead of summit

Delhi's luxury hotel market is witnessing an extraordinary squeeze ahead of the BRICS Summit, with several marquee properties running out of rooms and tariffs at some hotels crossing Rs 2 lakh a night as international delegations, officials and visitors descend on the national capital for the September 12-13 gathering.

Availability has tightened sharply for the days surrounding the summit. The Taj Mahal Hotel and The Oberoi, New Delhi, were showing no rooms for September 11 and 12, while Taj Palace was completely booked from September 10 to 12. The Leela Palace was also not accepting bookings for September 10-12. At ITC Maurya, one of the capital's most prominent diplomatic hotels, starting tariffs for accommodation between September 10 and 13 had climbed beyond Rs 2.3 lakh per night. The rates and availability, however, remain dynamic and could change with cancellations and fresh bookings.

Summit puts room inventory under strain

The scramble for accommodation comes as Delhi prepares to host one of the year's biggest diplomatic gatherings, bringing foreign leaders, ministers, senior officials, security personnel and accompanying delegations to the city. The concentration of demand over a narrow window has put exceptional pressure on the capital's premium hospitality inventory, particularly properties preferred by visiting heads of government and official delegations.

Hotel Association of India president and Radisson Hotel Group's South Asia chairman K B Kachru said the summit had placed considerable focus on the availability of rooms and exposed a wider mismatch between India's growing ambitions as a destination for major international events and the pace at which its hospitality infrastructure has expanded. India currently has only around 2 lakh to 2.2 lakh branded hotel rooms, according to Kachru.

Demand is also spreading beyond Delhi's traditional diplomatic luxury properties into the wider National Capital Region. At Ramada Encore by Wyndham on the Dwarka Expressway, occupancy for September 12-15 was tracking at around 65 per cent, reflecting the additional business being generated by the summit.

The LaLiT New Delhi is preparing to accommodate international guests and delegates, with representatives from countries including South Africa, Burundi and the UAE expected to stay at the property. Hotels are consequently making preparations not only for higher occupancy but also for the security, food, protocol and logistical requirements accompanying high-level international delegations.

Room rates climb across Delhi-NCR

The summit-related rush is feeding into a broader increase in hotel tariffs. Radisson Hotel Group's South Asia Managing Director and COO Nikhil Sharma said average room rates across its portfolio in September were pacing more than 25 per cent above the corresponding period last year. Demand has intensified particularly around the summit dates, while shorter booking windows are providing further support to rates.

Hotels expect the pressure to remain elevated as the summit approaches, with last-minute bookings potentially adding another layer of demand. The scarcity at Delhi's best-known properties means visitors unable to secure accommodation at preferred hotels may increasingly look towards alternative luxury properties and hotels elsewhere in the NCR.

The sharp rise in tariffs also highlights the economic impact of hosting large global events. While the summit is generating a windfall for hotels and related hospitality businesses, the shortage of premium rooms has renewed attention on whether India's hotel infrastructure is expanding quickly enough to match its growing calendar of diplomatic conferences, business gatherings and other large international events.

With several of Delhi's leading luxury properties already effectively sold out on crucial dates and remaining rooms commanding exceptional premiums, the BRICS Summit is shaping up to be one of the strongest event-driven demand periods the capital's hospitality industry has witnessed in recent years.