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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.
http://www.domain-b.com/industry/Hotels/20090404_hotel_majors.html
Mumbai, Jan. 23 The world could be in the grip of the most severe slowdown in recent times but this has not deterred global hotel players from announcing new projects in India.
A key reason could be cooling land prices, coupled with the need for quality hotel rooms in the country, say analysts.
“International hotel majors have a long-term view of India. Most properties will become operational only around 2012 by which time the market is expected to bounce back. Most of them also have enough cash to buy land,” Mr Rashes Shah, analyst with brokerage ICICI Direct, told Business Line.
Over the last few years, many hospitality projects were announced by local real-estate companies. Most of them are, however, in the midst of a tight cash trap and are keen on exiting as these projects involve long gestation periods.
Window of opportunityAccording to an earlier estimate by ICICI Direct, 20-30 per cent of additional room capacity planned by 2010 will be deferred by two-three years. This has opened a window of opportunity for foreign players in terms of expanding their presence. A slew of developers are ready to part with unfinished, partially finished or recently commissioned hotel sites. Some of these are distress sales, said Mr Julian Groom of Mumbai-based DB Hospitality, which is a partner of Le Meridien and recently signed an agreement with Japan’s JAL Hotels.
The US-based Hilton Hotels Corporation announced the launch of its upscale brand, Doubletree, in India. It signed a long-term management pact with Indian real-estate property developer JMD last week for a 182-room hotel in Gurgaon scheduled to open in 2010.
Global Hyatt Corporation also made public recently its intention to add 20 properties in India over the next four years. Its strategy is to penetrate Tier 2 and 3 cities apart from the traditional leading markets.
Six of these hotels will sport its upper mid-market brand, Hyatt Place. The ones spread across India are the Hyatt Regency, Grand Hyatt and Park Hyatt. “During the last year, we have completed more hotel transactions in India than at any other time in our 25-year history,” said Mr Steve Haggerty, global head of real-estate and development for Chicago-based Global Hyatt Corporation.
Marriott, IHG plansMarriott International Inc is also sticking to its plan of opening seven hotels this calendar, which translates into 1,561 new rooms. These include JW Marriott Hotel in Bangalore, Marriott Hotel & Convention Center in Pune and five of its mid-market brand Courtyard(s) in Gurgaon, West Pune, Hyderabad, Ahmedabad and Mumbai. Another 14 (previously announced) hotels are expected to be commissioned by 2012.
InterContinental Hotels Group had announced development of 22 additional hotels within the next few years. These will be spread across its three brands — InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts and Holiday Inn Hotels & Resorts.
IHG has a current portfolio of 13 hotels in major business and tourist hubs across the country. With this recent initiative, IHG will add 5,000 rooms to its existing number of 2,400.
http://www.thehindubusinessline.com/2009/01/24/stories/2009012451081500.htm