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The hospitality industry is in for a massive overhaul with over 50 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 a reflection of this shortage as well as the existing growth rate of the industry. According to the world travel and tourism council, the travel industry in India grew by 8.4% in 2006 and will grow by 8% per annum from 2007-2016, with business travellers forming the bulk of the tourists. The growth in the hospitality industry, on the other hand, is pegged at 15% every year, and with 2,00,000 rooms (both luxury and budget) needed in the country, the segment is poised for a stupendous growth. In a bid to take a piece of the pie, many leading international budget hotel chains are sizing up plans to debut in India. The latest being Royal Indian Raj International Corporation (RIRIC), which has entered into a contract with Choice Hotels to build 15,000 budget hotel rooms under the international brands of Comfort, Quality, Sleep Inn and Clarion in the next 5-7 years with an investment of $4 billion. Hometels by Sarovar Hotels will follow suit, where Bessemer Partners and New Vernon Private Equity are investing $44 million, while Warburg Pincus is investing in Lemon Tree and Red Foxx brands of hotels in the country. Accor is introducing Formula 1 and Ibiz brands, India Hotels of Tata Group is launching the Ginger brand of hotels and Super8 Motels, CountryHearth, America’s Best Inns and Best Value Inn are also all set to enter the Indian market through the franchisee route. Berggruen Hotels, a new hotel venture backed by Berggruen Holdings Inc, will be 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 two-three years are Golden Tulip, Radisson chains’ Country Inn & Suites and ITC’s Fortune Park. Other entrants in this field are MS Crimson, Arora Holdings, Hampshire Hotels and Resorts, Jumeirah, Mandarin, Parsvnath Developers, Dabur Hotels etc. Even the railway ministry has leased out land at 11 places for budget hotels and plans to upgrade its Yatri Niwas properties across the country. | Daily Extras! Eclat Me | Success Tip of the Day| 1DailyDiversion| Eclat Web - Must Visit Websites! A Beautiful Pic Every Day! Word of the Day| Quotation of the Day| Make Money! Immigration News! Desire- WOW Stuff! Stock Mkt Updates |
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