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International Budget Hotel Chains Eye India's Hospitality MarketBy ugesh sarkar, Section Gurgaon Real Estate Property  The Hopitality industry is in for a massive overhaul with a large number of international budget hotel chains foraying into India. Though there are many figures doing the rounds, industry leaders peg the demand-supply gap of middle-level hotel rooms today at over 50,000 per year.The overseas interest is as much a response to this shortage as a reflection of investors' confidence in the prospects of India's hospitality business. Gurgaon-based 32nd Milestone is launching three boutique hotels in Goa and one in Gurgaon. Said Anubhav Sharma, Managing Director, Milestone Resorts, "The potential for mid-priced hotels is huge in India and it is about time that hospitality companies tapped this virgin sector and reap the benefits before it becomes too crowded." Realty major, Emaar MGF has also forayed into the budget travel segment by announcing a tie-up with France's Accor Group to bring the Formule 1 brand of budget hotels to India. The new venture, "Budget Hotels India Private Limited", has planned investments of $300 million over 10 years. Recently, Delhi-based hospitality company, Lemon Tree Hotels, announced an investment of Rs 1,800 crore in the next three years to open around 3,800 rooms across the country "Out of the 700 million tourists globally, 500 million are in the mid-income category. There is a strong need to tap this market and we have a lot to learn from Sri Lanka and Thailand in this regard," said T. K. Bhowmick, chief economist at Reliance Industries Ltd. In fact, the demand for mid-priced and budget hotels in India is also driven by some 4 million domestic tourists, he said. "People who avail the leave travel compensation alone must be around 10 million, which means 2 million households," Click On "Full Story" For More....
he added. The demand in the hospitality market is further being fuelled by the Commonwealth Games in 2010 that poses the need for 1,50,000 rooms in the country, says the tourism ministry.
Leading international budget hotel chains are chalking up plans to debut in India. Canada-based The Royal Indian Raj International Corporation (RIRIC) has entered into a contract with Choice Hotels to build 15,000 budget hotel rooms across the country under the international brands of Comfort, Quality, Sleep Inn and Clarion in the next five to seven years with an investment of over $ 4 billion. Realising the potential of the midpriced market early, hospitality major ITC Ltd set up a subsidiary, Fortune Park Hotels Ltd, way back in 1995. Today, the company has 23 operating hotels, with 1,638 rooms across 23 cities and 20 hotels in various stages of completion. The latest to join the race is UKbased Dawnay, Day Hotels, which plans to launch 10 mid-priced hotels by 2010. "The mid-priced hotel market in India is estimated to be worth Rs 2,500 crore, growing at 15 per cent per annum. The organised sector is only 10 per cent of the total hospitality industry, with a huge potential for players like us," said Mandeep S. Lamba, head, Dawnay, Day Hotels' India operations. Berggruen Hotels, a new hotel venture backed by Turkey's Berggruen Holdings Inc, willbe launching Keys, a new brand of boutique budget hotels in India. So will Dubai-based Istithmar Hotels and UK-based easyHotel. Some deluxe hotel chains looking at the budget segment in the next twothree years are Golden Tulip and Radisson chains' Country Inn & Suites. Other entrants in this field are UKbased Arora Holdings, New Yorkbased Sant Chatwal promoted Hampshire Hotels and Resorts, Jumeirah, Hong Kong-based Mandarin Oriental Hotel Group, Delhi-based Parsvnath Developers (which has tied-up with Bangalore-based Orchid Hotels) etc. Source: HT News By Varun Soni 05/May/08
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