The AI Summit could also be over, however the sold-out rooms and tariff spikes it triggered have uncovered one thing much more cussed: a structural scarcity of business-grade hotel stock that India’s hospitality sector can not paper over. Delhi’s infrastructure buckled beneath the surge.
High accommodations bought out. Company spilled into serviced residences, short-term leases, and secondary micro-markets inside commuting distance of the occasion hub.
Arjun Baljee, President of Royal Orchid Resorts, explains that “Town is actually full when 9 out of 10 high-end rooms are booked,” he says. “Once you mix packed accommodations with skyrocketing costs and the near-impossibility of discovering a single empty room, it’s a transparent signal town has run out of area.”
Baljee calls this phenomenon “market compression”, some extent at which demand doesn’t disappear however migrates, cascading outward into no matter stock stays. It’s a stress valve, not an answer.
Kahraman Yigit, Co-Founder & CEO, Olive Hospitality says the speed spikes seen throughout large-format occasions, worldwide conferences, commerce exhibits, and world leisure should not, he argues, a narrative about opportunistic pricing. They’re a narrative about constrained supply.
“What we’re witnessing indicators that business-grade stock has merely not saved tempo with the size and rising formalisation of company journey procurement throughout main business corridors,” he says.
The roots of the issue run deep. Over the previous decade, hotel growth in India has skewed closely towards two extremes- luxurious at one finish, fragmented finances stock on the different, leaving a conspicuous hole in the center.
Scalable, institutionally managed mid-market capacity, exactly the phase that absorbs the majority of business journey, has been chronically underbuilt. “The RevPAR spikes we see throughout peak demand cycles are due to this fact much less about opportunistic pricing and extra about constrained high quality supply,” Kahraman says.
The business’s response to this volatility has been to sharpen its instruments moderately than broaden its rooms. Income administration techniques are rising extra data-led and demand-responsive, and pricing is transferring steadily towards airline-style yield models—dynamic, compressed, and ruthlessly environment friendly.
However Kahraman is clear-eyed in regards to the limits of that strategy.
“Sustainable development will rely not on episodic price expansion, however on disciplined capacity creation, via platform-led, tech-enabled operators who can standardise product and optimise distribution effectively throughout cities.”
Revealed on February 22, 2026
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