From hub of cinemas to hub of budget hotels

Hospitality destination: A new hotel at Gandhi Nagar alongside the existing budget hotels in Vijayawada.

Hospitality destination: A new hotel at Gandhi Nagar alongside the existing budget hotels in Vijayawada.   | Photo Credit: CH_VIJAYA BHASKAR

Gandhi Nagar has most of city’s budget hotels; owners say business turned dull

Gandhinagar, the hub of movie theatres, is gradually undergoing a change as the area is gaining popularity for numerous budget hotels. For those visiting the city for business purposes, the area, close to railway station and the bus terminal, is the one-stop destination that offers multiple options. The area has about 70 air-conditioned budget hotels that charge between ₹800 to ₹1,500 per day.

There are hotels that are a few months old and some existing hotels have expanded their premises. While having more number of budget hotels in one place is a boon for customers, the same is hampering the business prospects.

Most of the managements have spent a good amount on the aesthetic look, décor and pleasing coat of paint both on the interior and exterior walls. Some have spent lavishly on the elevation to present a grand look. “Cleanliness is the key to attract the customers,” says V. Raja Rao, a hotelier.

According to hoteliers, the business of budget hotels has come down since the bifurcation for various reasons including the increase in the number of rooms available.

Inflow down

“Until bifurcation, the hotel business was flourishing here. It gradually came down due to reasons including the GST. Though the prevalence of business aggregator services for hotel bookings has helped budget hotels, it could not help us get 100% occupancy like we had earlier,” said Muppa Venkateswara Rao, general secretary of the Vijayawada Hotel Owners’ Association.

“The inflow of professionals like medical representatives, marketing executives, businessmen and others to the city has come down of late. Officials like to stay at the top hotels which are doing brisk business unlike us,” he added.

Hotel owners say the decreasing number of tourists is another cause for the decline in business.

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Printable version | Apr 10, 2020 9:00:44 AM |

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