Hotel majors’ plans unshaken despite downturn
04 Apr 2009
In spite of the recession, international hotel chains are not holding back their investments in India. For example, Vikram 'Sant' Chatwal, chairman and chief executive of Hampshire Hotels, has said he is looking to invest Rs5,000 crore by 2012-13 in hotel properties in Kochi, Mumbai, Bangalore, Jaipur, Kolkata and Hyderabad.
Europe's Movenpick Hotels & Resorts also wants to manage 15 hotels in India by 2015, according to a Moneycontrol report. Swissotel Hotels & Resorts and Corinthia Hotels, along with US-based Berggruen Hotels, plan five mid-priced hotels under the Keys brand in Tier I and II cities, with an investment of $21 million.
MGM Mirage Hospitality, HK's Shama Group, Langham Hotels International, and the UAE-based Jumeirah plan to service 136 upscale room apartments in November in Bangalore.
Existing chains too are going ahead with expansion plans. France-based Accor Hospitality is to introduce nearly 10,000 rooms. Chicago-based Global Hyatt Corporation also has major expansion plans for India.
Tourism Secretary Sujit Banerjee says India needs additional 150,000 rooms, of which 100,000 rooms should be in the budget category.
According to hospitality consultant HVS, international and domestic hotels plan to build at least 114,000 rooms in India, but only 47,000 rooms are actually under construction.
Chatwal too pointed out that India is still facing huge shortage of rooms, and the economic downturn presents an opportunity, as the cost of development and construction is lower.
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