Riding hope express, MNC biggies check into Indian hospitality

NEW DELHI: Putting their bets on the new government's promise to boost tourism, hospitality sector is hoping for a full-house show in the new year as a large number of big hotel chains from India and abroad line up plans to expand presence in the country.

The renewed sense of optimism follows a volatile economic environment for most part of 2014 and the sector hopes that initiatives announced by the new government, including those related to e-visas and specific funds for developing tourist circuits, would bring in good business.

Global, as well as domestic hotel chains, including Hilton, Carlson Rezidor, Starwood, Kempinski, Bharat Hotels and InterGlobe, are betting big on India's long term potential as a tourist destination and have announced their plans to add more properties and rooms despite the short-term hurdles.

Reflecting on 2014, Starwood Hotels & Resorts' Managing Director (India) and Regional Vice President (South Asia) Dilip Puri said: "With the volatile economic environment and the depreciating rupee in the first half of the year the ride for the Indian hospitality sector was indeed a bumpy one."

Echoing sentiments of the industry, he said: "We are seeing great momentum in India and continue to believe in the opportunities that lie for us."

The optimism is derived from the steps that the new government led by Prime Minister Narendra Modi stepped a much needed boost to the sector.

In the Budget for 2014-15, Finance Minister Arun Jaitley acknowledged the importance of tourism as a major job creator and announced the government's intention to facilitate visa on arrival facility.

He announced that a facility of Electronic Travel Authorisation (e-Visa) would be introduced in a phased manner at nine airports in India where necessary infrastructure would be put in place within six months.

Besides, Jaitley also proposed to create five tourist circuits around specific themes and set aside a sum of Rs 500 crore for this purpose.

Seeking to tap the opportunity, global hospitality major Carlson Rezidor Hotel Group announced it would have over 50 operational Park Inn by Radisson properties in India by 2024.

The chain, which currently runs 73 operational hotels and has 37 hotels in various stages of development under brands Radisson Blu, Radisson, Park Plaza, Park Inn by Radisson and Country Inns & Suites By Carlson in India.

Likewise, Starwood Hotels & Resorts announced plans to have up to 65 operational properties by end of 2015 in India. It currently operates 39 hotels in India under six brands, including Luxury Collection, Westin, Sheraton, Le Meridien, Four Points by Sheraton and Aloft. It is looking to have a total of 100 hotels in its Indian portfolio by 2015.

Starwood will also relocate its global headquarters from the US to India in March 2015 for a month as the company seeks to enhance operations here. Today, India is Starwood's 4th largest market and will soon become the 3rd biggest after the US, China and Canada.

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