Global hotel majors still bullish on India

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 opportunity

According 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 plans

Marriott 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

Gas shortage hitting hotels hard

Bangalore : Hotels and restaurants
found it difficult to manage with the shortage of cooking gas, as well as reduced supply of onions
and potatoes.
HOTELS: Hoteliers said that there was a severe shortage of LPG cylinders. The oil companies' strike made it difficult to run the generators. Hotel sources said it also affected outdoor catering. Lunch is served for around 2-3 lakh employees in the city. As fewer vehicles were plying, there was a delay in delivery.

Krishna Rao of Bangalore Hotels Association said many hotels are finding it difficult to cope with the gas shortage. There was also inadequate supply of some essential commodities like rice and tur dal in RMC Yard. If it continues till Saturday, it will seriously affect the hoteliers, he said.

POULTRY: The supply of poultry was unaffected. Mohammad Fazaullah Sharif, MD, Karnataka Co-operative Poultry Federation, said that there is no hike in prices. Vegetables, poultry and milk are being allowed to enter the city.

VEGETABLES: The supply of potatoes and onions was hit as these come from other states. One vegetable supplier said that there was only 50% supply of these items. Potatoes come from Hyderabad and Pune, and onions are procured from Maharashtra, Pune and other places.

The prices too shot up -- potato was at Rs 15 per kg (Rs 12 earlier), onions cost Rs 28 per kg, tomatoes has jumped from Rs 12 to Rs 15 a kg.

The supply of other vegetables was not affected and prices remained the same. From the APMC Yard, vegetables were loaded into three-wheelers and other private transport vehicles.

HOSPITALS: Hospital authorities heaved a sigh of relief that the oil company strike ended as they were worried about running generators and sending ambulances for emergencies. Assistant administrator of St Martha's Hospital James Saqueira said that it had requested KPTCL to provide power. "At present, there is no problem and we can manage to run the generator and ambulances," he said.
http://timesofindia.indiatimes.com/Bangalore/Gas_shortage_hitting_hotels_hard/
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