The hotel industry has seen strong demand since December last year when India assumed the Presidency of the G20. In the run up to the G20 Leaders’ Summit on September 9 and 10, hotel rates are set to hit an all time high.

Industry sources told CNBC-TV18 that between September 5 and 10, average room rates in five star hotels could be 50-60 percent higher than usual.

As many as 24 five star hotels in Delhi-NCR have been identified by the government for world leaders and VVIPs G20 leaders to stay. These hotels are completely booked and will be out of bounds for the general public from September 6 and 10.

Of these, there has been very strong demand for hotels like Taj Palace, Taj Mansingh, ITC Maurya, Shangri La, Le Meridien, Leela, Lalit and Imperial Hotel due to their proximity to the G20 venue in Pragati Maidan.

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Industry sources said that the cost of a presidential suite in the top seven-eight five star hotels could be as much as Rs 20 lakh per day during the G20 summit dates. Several G20 nations have made special requests for presidential suites and hotels are accordingly making the renovations.

"We are all as an industry looking forward to the G20 Summit. This is one of the largest events ever hosted in Delhi and the biggest one post COVID. This could lead to 5-10 years of buoyancy for the hotel industry. We have all hands on deck and our best people on the job. No leaves are being allowed during this period", said Ajay Bakaya, Fellow Member, Hotel Association Of India and Managing Director, Sarovar Hotels Pvt Ltd.

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Not just five star hotels, there is a strong demand for all hotels that are three star and above. Apart from VVIPs and VIPs, there are large teams of support staff, air crew, protocol teams and journalists coming to India for the summit.

Around 3,000 journalists from India and abroad have been accredited for the summit. Bakaya said that including hotels in Aerocity and Central Delhi, there will be a strong demand for at least 100 hotels in the Delhi-NCR region. Those who are unable to get rooms in Delhi are also likely to take up accommodation in Noida and Gurugram.