Delhi's luxury hotel market is facing a sharp squeeze in room availability and rising tariffs ahead of the BRICS Summit, scheduled for September 12-13 in the national capital.

With delegates and visitors expected to arrive ahead of the two-day Summit and extend their stays, demand is spreading across several days and putting additional pressure on hotel inventory, particularly in central Delhi.

A check of hotel booking platforms for September 11-13 showed no availability at Taj Mahal and Taj Palace in New Delhi, while The Oberoi, New Delhi, was sold out for parts of the period. The Leela Palace New Delhi was also not accepting bookings for the specified dates. At hotels where rooms were still available, including ITC Maurya, New Delhi and Shangri-La Eros New Delhi, tariffs were significantly higher, with some room rates running into six figures a night. The trend highlights the premium being placed on accommodation around the Summit.

The situation could affect tourists, business travellers and families who already have plans to visit Delhi during this period. Travellers may have to pay a higher premium for luxury properties, consider hotels farther from central Delhi, change their travel dates or look at more affordable accommodation options. The expected demand comes as India's hotel industry continues to look towards events-led travel and domestic demand to support business during a challenging period for international travel, including the impact of geopolitical tensions and the West Asia conflict.

"and, particularly in the days around the event, with shorter booking windows further supporting rate growth," Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group

He added that demand is expected to remain strong as the Summit gets closer, with more travellers likely to make last-minute bookings closer to the event dates. Large international and domestic events can create a concentrated demand for hotel rooms, meeting facilities and other hospitality services, particularly across the luxury and Meetings, Incentives, Conferences and Exhibitions (MICE) segments.

For Delhi, the BRICS Summit is emerging as a major demand driver, with the strongest impact being seen at the upper end of the hotel market. Luxury room inventory in key business and diplomatic districts is relatively limited, making these properties more sensitive to sudden increases in demand.

However, the current room rates should not be treated as fixed market prices. Hotel tariffs and availability are dynamic and can change quickly based on bookings, cancellations and the release of additional inventory by individual properties.

Emails seeking comments from the hotels cited for availability and room tariffs remained unanswered till the time of publication. Room tariffs and availability are dynamic in nature and subject to change.