Luxury hotels across Delhi are witnessing a surge in demand and room rates ahead of the BRICS Summit, as international delegations, officials, business visitors and other travellers converge on the national capital for the September 12-13 event.

Several prominent five-star properties are already showing limited or no availability around the summit dates, while rooms at some hotels are being listed at exceptionally high prices.

A check of hotel booking platforms showed no availability for September 11-12 at The Taj Mahal and The Oberoi in New Delhi. Taj Palace also showed no rooms for September 10-12, while The Leela Palace, New Delhi, was not accepting bookings for September 10-12.

At ITC Maurya, available rooms for September 10-13 were listed at starting prices exceeding Rs 2.3 lakh per night, highlighting the premium being commanded by luxury accommodation during the summit period.

BRICS Drives Room Demand

The two-day summit is concentrating hotel demand across several days as delegates and visitors arrive ahead of the event and extend their stays.

The effect is particularly pronounced in central Delhi, where luxury hotels are concentrated around major diplomatic, government and business districts.

K B Kachru, President of the Hotel Association of India and Chairman-South Asia at Radisson Hotel Group, said the summit was placing significant focus on India's available hotel inventory.

He also pointed to a wider structural challenge, saying India's hospitality infrastructure had not kept pace with the country's growing ambitions as a global tourism and Meetings, Incentives, Conferences and Exhibitions (MICE) destination.

Luxury Hotels Feel Pressure

The room shortage is most visible in the luxury segment, where the supply of high-end properties is relatively limited.

Kachru estimated that India has around 200,000-220,000 branded hotel rooms, which he described as inadequate for the country's size and tourism ambitions.

Major international events can therefore create sudden spikes in demand that existing hotel capacity struggles to absorb.

For Delhi, the BRICS Summit has compressed this demand into a narrow period, putting additional pressure on available rooms in the days immediately before and after the event.

Rates Surge Above Rs 2 Lakh

Hotel tariffs have risen sharply at some properties, although the quoted prices should not be interpreted as fixed market rates.

Room availability and pricing on booking platforms can change rapidly depending on cancellations, new bookings and hotels releasing additional inventory.

The highest rates are being recorded among premium five-star properties, where demand from official delegations and international visitors is particularly strong.

The elevated prices could force tourists and business travellers with existing plans to either pay a premium, change their dates or search for accommodation outside central Delhi.

Delhi-NCR Sees Spillover

The demand surge is also extending beyond central Delhi into the wider National Capital Region.

Rahool Macarius, Market Managing Director, Eurasia, Wyndham Hotels & Resorts, said the summit was creating a distinct event-driven demand pattern across Delhi-NCR.

He pointed to the role of location in determining how hotels were benefiting from the additional bookings.

At Ramada Encore by Wyndham on Dwarka Expressway, occupancy for September 12-15 was tracking at around 65 per cent, according to Macarius, ahead of broader market demand.

The spillover suggests that travellers unable to find rooms in central Delhi could increasingly look towards Gurgaon, Dwarka, Noida and other NCR locations.

International Delegates Arrive

The LaLiT New Delhi is among the hotels preparing to host international guests during the summit period.

The property said delegations and representatives from countries including South Africa, Burundi and the UAE are expected to stay at the hotel.

The arrival of foreign delegations is adding to the international character of demand during the summit, while hotels are preparing additional services to cater to diplomatic and official guests.

The concentration of international visitors also benefits restaurants, transport providers, conference facilities and other businesses linked to the hospitality sector.

Room Rates Rise 25%

Hotel groups are reporting stronger pricing momentum across Delhi.

Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group, said average room rates across the group's portfolio were pacing more than 25 per cent higher year-on-year in September.

He attributed part of the increase to heightened demand around the BRICS Summit and shorter booking windows.

Hotels expect demand to remain strong as the event approaches, particularly as last-minute travellers finalise their plans.

MICE Sector Gets Boost

The BRICS gathering comes at an important time for India's hospitality industry, which is increasingly relying on domestic travel and major events to support demand.

International geopolitical tensions, including the continuing West Asia conflict, have created uncertainty for some segments of international travel.

Large diplomatic and corporate events provide an alternative source of concentrated demand, particularly for luxury hotels and the MICE segment.

Such events generate demand not only for rooms but also for conference facilities, restaurants, transport, security services and other hospitality-related businesses.

Tourists Face Tough Choices

The immediate impact of the hotel shortage is likely to be felt by travellers who had planned visits to Delhi during the summit period.

Those unable to secure rooms at preferred properties may have to pay substantially higher rates, move to hotels farther from central Delhi, select lower-priced accommodation or change their travel dates.

However, hotel prices remain dynamic. Availability can change quickly if bookings are cancelled or additional rooms are released.

For Delhi's hotel industry, the BRICS Summit nevertheless represents a major short-term demand catalyst and provides a glimpse of both the opportunities and capacity constraints facing India's rapidly expanding MICE and tourism economy.