Union Minister Venkaiah Naidu said that Vijayawada and Guntur cities are being developed as Mega Cities and rumors spread that AP New capital will be formed in between two cities have increase the demand for Vijayawada all the sudden. Big Companies in Hotel and Tourism sector like Novotel, Taj, Marriott and Park Hayat are concentrated on Vijayawada to start their operations. It will take 3 to 5 years time to expand their business in the city.
Earlier, businessmen were moved to Hyderabad from Vijayawada and Guntur for business purposes. Now the scene has reversed. People are travelling regularly from Hyderabad to Vijayawada in recent past for commercial operations. This makes huge demand for Vijayawada Start Hotels. Suite Occupancy rate in Vijayawada Star Hotels has sudden increased from existing 60-70% to 80%. So far, in Vijayawada there are no 5 star hotels.
There are 3 hotels like Fortune Murali Park, Taj Gateway and DV Manor in the city having 4 star statuses. Other than that, there are 7 three star hotels and around 40 Two star hotels exist in the city. In Hotel and Tourism Sector Hyderabad is considered as A category, Vizag comes in B category and Vijayawada in C category. After the division of the state, Vijayawada has lot of demand in this sector.
