Hotel majors eye aggressive expansion in India
Hotel majors are looking forward to cash-in on the increasing demand
The hotel industry, which has been in a state of flux due to the introduction of goods and services tax (GST) and demonetisation, finally seems to be turning the corner.
Not only are tourism and domestic travel expected to surge, a raft of global and domestic hotel powerhouses such as Hilton and Radisson are planning to aggressively expand in India. These developments will help offset the rough patch the industry due to the two reforms by the government. Tariffs and occupancy in hotels have taken a severe knock in the past one year.
The Radisson Hotel Group is planning to increase its total portfolio of hotels in India to 200 by 2022. The group is also looking to grow its regional footprint. The hotel chain has about 90 hotels in India at the moment.
Hilton Worldwide is also bullish on the Indian market. The hotel chain expects both occupancy as well as better room tariffs to drive revenue going forward. Occupancy rate stands at around 70% level for the hotels it runs in India.
To cash-in on the increasing demand, InterContinental Hotels is set to open 100 to 150 hotels over the next 10 years. The hotel major is also looking to bring several of its global brands such as Indigo and Kimpton to India.
Other than global hotel chains, domestic players such as ITC and Leela are also aggressively investing to make the most of this tourism wave.
Leela Palaces Hotels and Resorts is expecting to clock a 15% topline growth in FY19. Expansion of existing properties and new hotel additions in India and overseas markets are expected to drive sales growth for the group. These aggressive expansion plans are also expected to aid job creation in India.
First Published: Apr 6, 2018 9:11 PM IST
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