Hospitality sector in India marks Rs 4,500 cr for ramp-up

HOSPITALITY majors are ramping up investments in new projects and expansion, which are expected to be Rs 4,500 crore over the next two years on the back of a massive growth in leisure travel. Indian hotel companies like Indian Hotels (owners of the Taj brand), Leela Venture, EIH (member of the Oberoi group), Kamat Hotels, and Royal Orchid are likely to see room inventory go up by around 6,500 rooms given the burgeoning hospitality sector in the country. Global hospitality majors such as Intercontinental, Starwood, Hilton, Accor, Carlson are all stepping up their global offerings in the Indian market given the upbeat demand. While Leela Ventures is investing around Rs 1,265 crore, Indian Hotels is expected to invest around Rs 1,250 crore. EIH, Kamat and Royal Orchid are likely to pump in Rs 1,150 crore, Rs 365 crore and Rs 500 crore, respectively. A total of 60 new properties across categories are likely to come up in the Indian market, sources said. India is witnessing a spurt in hotel expansion as it is facing a severe shortage of hotel rooms because of increased business activity and leisure travel by the middle class and by international tourists, said Chender Baljee, CMD, Royal Orchid. The demand-supply mismatch is likely to last for another two years. A buoyant economy, growth in aviation and real estate, improved infrastructure and the easing of restrictions on foreign investments is expected to fuel demand across star categories in a majority of markets across India. “Hotels on an expansion phase will be in a better position to absorb the decline in occupancies and rates over the long term, as any additional supply can offset the pressure on room rates,” said Nitesh Shetty, MD, Nitesh Estates.

Courtesy: EconomicTimes
For more detail on Retail India visit: http://www.retailindia.tv/