The Indian hotel industry will almost double the number of rooms from the current levels in 3-4 years by adding an estimated 55,000 rooms, according to a study by consulting firm HVS India. The addition of new rooms is going to be led by regional real estate players and hospitality firms as most large real estate developers have abandoned or scaled down their expansion plans.
Th study revealed that fewer new rooms were announced last year but developers started work on a higher proportion compared to 2007-08.
Of the 94,115 rooms announced by various hotels and real estate developers for the year ended March’09, 60% of the rooms saw some active development .Compared to this, in the previous year comparatives announced plans to build over 1.14 lakh rooms of which 58% saw actual development .
“Despite the economic downturn, Indian hospitality will see the maximum development of rooms in the next 3-4 years. The rate of development of rooms would be much higher, some thing that we have not seen in the past ten year,” said Manav Thadani managing director at HVS India.
He added that even as big real estate developers have shrunk their hotel plans, regional real estate developers as well as Indian hotel companies are continuing with their own expansion plans.
Mumbai, Delhi NCR, Bangalore, Hyderabad and Pune were among the top five cities in terms of active development of new projects announced last year.
With revival in corporate activity, business travel is expected to bounce back sooner compared to the leisure travel market which is one reason why hotel construction is being pursued aggressively in Mumbai, believe hotel consultants.
On the other hand the five market which is one real granted by government for hospitality projects in Delhi & NCR region to increase supply of rooms for the forthcoming Commonwealth Games is driving hotel construction in this region. But the HVS report points out those only 5,700 rooms of the 8,776 rooms being activity built are expected to open for the games next year.
Raymond Bickson, managing director of the India Hotels Company, who is also the chairman of World Travel & Tourism Council, India Initiative said that the Indian hospitality sector will witness improvement in the future.
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