F1 rush drives hotel rates to 40k a night

The traditionally low occupancy Diwali time has become a mega moneyspinner for hotels in Noida and Delhi this year. The first ever Formula 1 Airtel Indian Grand Prix at Greater Noida, slated for the festive weekend, has led to all nearby five-star hotels getting sold out.

The three-day event, which kicks off on October 28, has sent tariffs shooting up to Rs 40,000 a night in five-star properties in Mayur Vihar, Noida and Greater Noida. Hotel staff say teams and organizers have booked rooms for as long as a fortnight for the event, which is making its India debut.

Sooraj Jha, GM of Radisson Blu, Greater Noida, the closest five-star to the motor sport venue, says their 175-room property has been sold out for the event dates. “Being the first F1 event in India, it is generating a lot of interest. While teams like to be as close to the venue as possible, Delhi hotels are also chipping in to meet the demand. We sold out a long time back for those dates at substantially different tariffs than what people with inventory can get today. It was a business decision we took earlier and are not repenting it,” Jha said.

 
The only other five-star resort in Greater Noida, which belongs to the Jaypee Group, is also learnt to be in demand at unprecedented tariffs. Similarly, around 150 of the 190-odd rooms at Hilton’s new DoubleTree have been booked for a fortnight for around Rs 30,000 a night—nearly four times the average tariff of Rs 7,500. The adjacent Hilton property that is due to open in the next few days has also seen similar demand, though the tariffs are higher here.

Hotels in Delhi are also benefiting from the F1 rush. “Business travel around Diwali always takes a hit as everyone wants to remain home for the festival. So, occupancies and tariffs actually rise a week after Diwali for the peak winter travel season. But this year, Delhi hotels are also recording very high occupancies at high tariffs as both teams and visitors are coming in for the F1,” said a hotelier with a property in Delhi.

Proximity to the distant Greater Noida race track is proving to be the biggest draw for five-star hotels. Sonica Malhotra, director of the MBD Group that runs the 126-room Radisson in Noida, says the F1 event will be much better organized than last year’s controversial Commonwealth Games. “We have 100% occupancy from a week before the event and most guests are checking out a day after the main event on October 30. The average basic room tariff for that time is in the range of Rs 19-20,000 and suites go up to Rs 30,000. Otherwise, the usual October tariff for rooms in Noida is up to Rs 10,500 and Rs 12,000 in Delhi. Hotel tariffs are determined by demand and supply. The F1 event is generating tremendous interest in people,” Malhotra said.