BRICS Summit rush sends Delhi luxury hotel tariffs soaring, top properties sell out

Delhi’s luxury hotel market is experiencing a sharp supply crunch ahead of the BRICS Summit, with some of the capital’s best-known properties running out of rooms for key dates and available accommodation commanding exceptionally high tariffs. A review of hotel booking platforms for September 11-13 showed no rooms available at the Taj Mahal and Taj Palace in New Delhi, while The Oberoi, New Delhi, was sold out for part of the period. The Leela Palace New Delhi was also not accepting bookings for the dates checked.

Where rooms remained available, prices had risen dramatically. Properties including ITC Maurya and Shangri-La Eros were quoting tariffs reaching into six figures per night for some categories, reflecting intense demand surrounding the September 12-13 summit.

Summit stretches demand beyond two days

Although the BRICS Summit itself runs for two days, its impact on Delhi’s hospitality market extends over a wider window. Government delegations, officials, business representatives, media personnel and other visitors are expected to arrive before the event, while some will stay beyond its conclusion. This is concentrating demand across several days and reducing the number of rooms available in central Delhi. The pressure is particularly visible among luxury hotels located close to diplomatic and business districts, where high-end room inventory is limited.

The rush could make accommodation significantly more expensive for tourists, corporate travellers and families whose visits coincide with the summit. Travellers unwilling to pay premium rates may have to shift to properties farther from central Delhi, move their travel dates or choose lower-priced categories.

Room rates pacing 25% higher

The demand surge comes at an important time for India’s hospitality industry, which is relying on domestic travel and major events to help counter pressures on international travel arising from geopolitical tensions, including the conflict in West Asia. Radisson Hotel Group said September was already displaying stronger pricing momentum across its portfolio. “September is showing stronger momentum, with average room rates across our portfolio pacing more than 25 per cent higher year-on-year,” Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group, said.

He said the BRICS Summit was contributing to increased demand in New Delhi, particularly around the event dates, while shorter booking windows were providing additional support to room rates. The hotel group expects demand to strengthen further as the summit approaches, particularly as travellers making late plans enter the market.

Big events boost luxury, MICE business

Major international gatherings can provide a significant boost to the premium hospitality sector because demand extends beyond hotel rooms. Such events generate business for conference and meeting facilities, catering, transport and other hospitality services, making them particularly valuable for the Meetings, Incentives, Conferences and Exhibitions segment.

For Delhi, the BRICS Summit is emerging as a major events-led demand driver, with its effect most pronounced among upscale properties close to the capital’s diplomatic and commercial hubs. The unusually high prices visible ahead of the summit, however, do not represent fixed tariffs. Hotel rates are dynamic and can move substantially as rooms are booked, cancellations emerge or properties release additional inventory. The hotels whose availability and tariffs were checked did not respond to requests for comment by the time of publication.