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Purpose: Ahmadabad is not only one of the largest city and former capital city of Gujarat but also emerged as an important economic and industrial hub of North India. A latest study by Association Chambers of Commerce of India (ASSOCHAM) states that the percentage share of investments in hospitality sector in Gujarat has reduced from 29 percent for 2012- 13 to 14.5 percent as on June 2016. Henceforth, this paper tends to analyze the hotel’s performance in Ahmadabad city in terms of Key Performance Indicators (KPIs), revenue generation, hotel’s room demand and supply.
Methodology: The study is based on secondary data of Smith Travel Research, Global. It is a descriptive cum longitudinal study and its approach is deductive. Four reports of Smith Travel Research (STR) Global i.e. Trend report: Ahmedabad (Publication date August 16, 2017), Market pipeline report (STRG): Ahmedabad (Publication date August 16, 2017) Profitability report: Ahmedabad (Publication date August 16, 2017) and STR India hotel review report (Publication date August, 2017) have been used for this study. The data is further analyze by SPSS and AMOS Version 20.
Main Findings: The findings of this papers supports that there is a significant growth in the room revenue earnings of scale hotels in Ahmedabad from January 2010 to June 2017. Paper also reveals that the percentage change in Average daily rate, Revenue per available room, Occupancy percentage and demand of rooms is higher than pan India and central India scale hotels.
Implications: The findings of this paper may provide helpful information to the investors and hospitality professionals who want to invest, run or understand the behavior of the Ahmedabad hotel market.
Limitations: However the present study is confine to the secondary data of 55 different scale hotels of Ahmedabad.
Originality: Many statistical tool such as one way ANOVA, Tukey HSD, Kruskal- Wallis test and a Co variance model is used for the better inference of the study. A comparison of KPIs between Ahmedabad scale hotels versus pan and central India hotel is conducted to understand the potential of hotel market in Ahmedabad city. .
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