Hotel room rates up 15-20% since last year
There has been a 15-20 percent upsurge in room rates of major hotels in the country since last year, as well as a significant increase of 20 percent in hotel occupation rate, which could be attributed to the booming economic activities taking place in the country. The general rates in a five-star hotel for a room averaged around 0Rs 11,000 per night. Around a year back, the rates were between Rs 9000 and Rs 10,000. One five-star hotel in Karachi has raised its per night rate to Rs 12,000. The reason for the rise in hotel room prices could be attributed to the demand caused by increasing trade developments in major cities. Because of the rising demand, the hotel occupancy rate of major hotels is around 75-85 percent. This is a significant increase as compared with an average of 65 percent hotel occupancy rate around a year back. This figure shows that there has been an increase in foreigners visiting Pakistan, as they contribute heavily to hotel occupancy.
There has been a significant increase in the number of foreign visitors coming to Pakistan and it shows that major cities, particularly Karachi, is being considered much safer now by foreigners, as compared with a few years back when foreigners, reportedly, did not feel comfortable while visiting Pakistan. Even smaller hotels have increased their rates following their larger counterparts. Average three-star hotels have also increased room prices because of the constant rise in demand. The hotel industry is now on the upswing and its future prospects are looking bright. “Generally, there are ups and down in hotel occupancy rate, but this year it has been on the upside and it is expected to remain so in the coming days, as more economic developments take place,” said an employee of a major five-star hotel. The France-based Accor hotels on Wednesday opened its Grand Mercure Karachi Airport Hotel, bordering terminal 1 and the Star Gate on Sharea Faisal. Accor will also build a Sofitel hotel in the Clifton area in Karachi. Thus foreign investment in the hotel industry in Pakistan seems to be flowing in.
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