Globals brands eager to expand in India

Global hotel groups are looking to increase their footprint in India, encouraged by the resilience of its economy and the shortage of hotel rooms.

Canada-based Fairmont Raffles Hotels International, Thailand’s Amari Group, Luxe Worldwide Hotels, Zurich-headquartered Mövenpick Hotels and Resorts, and luxury hotel brand Waldorf Astoria Hotels and Resorts all have chalked out plans to enter or extend their business in India through the addition of five-star properties.

The hospitality sector requires investments of Rs60,000-crore over the next five years to meet the unmet demand of 150,000 rooms, according to a January study by the Federation of Indian Chambers of Commerce and Industry and Evalueserve.

Though most companies are looking at management contracts, which involve running hotels without any equity investment, some such as Luxe, which runs about 200 luxury boutique hotels, and Mövenpick are looking to acquire to make a quick foray.

According to estimates by HVS, around 95,000 rooms are expected to be added in India over the next five years, with half in the mid-market and budget category, and the rest in the luxury segment.