Star-category hotels running in huge losses in Chennai due to LS polls

Star-category hotels running in huge losses in Chennai due to LS polls

The profits for such hotels have deteriorated and the reason is the revocation of official party events.


Profits of star-category hotels have been diminishing since the operation of the election model code of conduct. Conferences and workshops concerning designated representatives and bureaucrats have been postponed, which has affected the hospitality sector severely.

Only official functions appear to be turning into a setback for the hotels as social events are being conducted, alltogether. All private organizations, government departments and state-owned bodies have shelved such proceedings for the past one month said the Chennai Hotels Association.

"Only social functions such as receptions, birthday parties and corporate meetings are taking place in star hotels. The events, where participation of ministers, MLAs and bureaucrats were needed, have been stopped due to the model code of conduct," R Rajkumar, secretary of the association said.

In Chennai and its borders, there are 180 to 200 star hotels, extending from three stars to five stars. Somewhere between Rs. 750 and Rs. 1,350 per head for non-vegetarian buffets are the general charges for star hotels. But now profits for these hotels have deteriorated and the reason is the revocation of such events.

"The Chennai Hotels Association had planned a meeting with Aavin, the state milk cooperative, in a city hotel to promote its products in the first week of April. But we had to push it to May because of the model code of conduct," Rajkumar said.

An official of a four star hotel at Anna Salai said, "On an average, we have around 20 events in a month at our conference halls, of which; a couple would require the presence of ministers. Now, only corporate events are happening."

MPs of Parliamentary Standing Committees also authoritatively visit the state as part of their official tour programme, apart from workshops and conferences.

"Because of the Lok Sabha elections, their representatives who used to book at least 20 rooms in hotels during their visit, have stopped the bookings. We expect the bookings for workshops and conferences to resume after April 18, the day when Tamil Nadu will go for polls," a board member of a star hotel city in T Nagar said.

Even nationalized banks are not conducting their review meetings as it sometimes requires the presence of elected representatives said the star hotel representative.

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