Kumara Krupa hotel’s nominal rates leaves star facilities gasping | Bengaluru News - Times of India

Courtesy: Sandeep Moudgal | News Source: timesofindia.indiatimes.com

BENGALURU : Kumara Krupa hotel, located behind the heritage structure of Kumara Krupa guesthouse, is giving star hotels in the vicinity a run for their money. Launched a year ago, the hotel has become a “favoured” property for bureaucrats, government employees and politicians who visit Bengaluru.

The hotel boasts rooms which rival ones in star hotels and comes loaded with amenities including Wi-Fi and parking space. Located right in the centre of the city, rooms cost as little as Rs 400 per head, which has given the hotel a unique selling point (USP).

Managed by Karnataka State Tourism Development Corporation (KSTDC), the hotel has 180 rooms — 150 executive and 30 deluxe — and is run on a “no profit, no gain” basis by the state-run corporation.

Officials say when the hotel was launched in January last year occupancy was a mere 10%. Now, on any given day, occupancy is at 50%. The hotel is open for common people, but at double the tariff rates as those set for government officials. “Effectively, 90 of the 180 rooms are always full on any given day,” said KSTDC managing director Kumar Pushkar.

Officials say the hotel has become so popular that star hotels in the vicinity have approached the government, urging it to increase prices to give them a “fighting chance” of attracting government clientele.

Still, DPAR officials say the government is flooded with requests from states to “reduce” rates to help their officials stay in Karnataka within their allocated travel and daily allowances. However, KSTDC says the government has no room to lower rates further.

“In fact, maintenance costs are higher than the tariffs prescribed. All the revenue generated goes to the government and the expenditure too is reimbursed by the government. We only get 10% as service charge for maintenance,” said Pushkar, adding room rates are fixed by DPAR for different categories of government officials.

The tourism development corporation is expected to take over management of other government guesthouses, including Karnataka Bhavan in New Delhi.

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