The world’s leading hotel companies have been outlining their plans to tap into the Indian market. Major firms such as Marriott International, Accor, Starwood Hotels & Resort Worldwide, Hyatt Hotels & Resorts and Hilton Worldwide have all made major statements in recent weeks about increasing their portfolios in the notoriously under-supplied Indian hospitality sector. Marriott last week announced the signing of four additional hotels in India, bringing the total to 29 properties now under construction or in planning in India, while Hyatt has announced plans to expand into 15 new Indian markets, including Bengaluru, Chennai, Hyderabad, and Pune, over the next five years. Hilton will bring as many as six brands into the country, including Waldorf Astoria, Conrad Residences, Hilton, Doubletree, Hampton and Hilton Garden Inn, adding approximately 1,200 rooms to its Indian inventory. Finally Starwood’s President & CEO, Frits van Paasschen, recently visited India, where he announced that the US-based company is on track with plans to grow its existing portfolio of 26 hotels in India 60% by 2013.
The Indian hotel market has seen huge volatility in recent years, with average daily rates soaring to become some of the highest in the world, on the back of a lack of supply of hotel rooms in the country. The mid-scale sector has been especially un-catered-for, but the launch of new international offerings, such as Hilton’s Garden Inn and Marriott’s Courtyard brands, look set to plug the gap.
Data from hotel performance analysis company, STR Global, has shown an upward trend for Indian hotels. Following 14 months of declining revenue per available room (revPAR) – the key hotel performance indicator – December 2009 and January 2010 saw a return to significant year-on-year growth.
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