Hotel occupancy in India’s cities grew at an average of 1.7% during 2010-11, despite a substantial addition of rooms, according to a study by hospitality business consultant HVS.

A total of 102,000 rooms will be added over the next five years, three-fifths of which are being built, with 50% catering to the mid-market and budget segments.

The country’s average room rates declined 1.4% during the period, with cities such as Pune, Ahmedabad, Mumbai and the Delhi-National Capital Region reporting a drop in prices, according to The Economic Times.

Cities such as New Delhi and Mumbai saw a 5-6% increase in prices in the five-star category compared with the previous year.