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Star hotels' growth affected by rising rupee
By siliconindia
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Thursday, 09 August 2007, 19:30 IST
Kolkata: Apart from the IT sector, the hospitality sector too is feeling the brunt of the appreciating rupee. Senior officials of various hotel majors like Hotel Leelaventure and Royal Orchid Hotels confirmed that the rising rupee had affected their topline growth by about 8-10 percent during the first quarter of the fiscal. However the hotels witnessed an overall growth due to the booming economy, reported Business Line.
"Nearly 80 percent revenue comes from foreign business travelers. Naturally, the rupee appreciation has hit our topline growth," said V.L. Ganesh, CFO, Hotel Leelaventure, to Business Line. A senior official of the Taj Group Hotels echoed a similar view.
Besides rupee appreciation, the increase in supply of room inventory has also led to a drop in the occupancy level in star hotels across India.