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Major hotel chains in expansion mode, to cash in on tourist traffic
Monday, 02 December 2002, 20:30 IST
NEW DELHI: Leading Indian hotel chains are in an expansion mode, as they seek to cash in on an expected resurgence in tourist traffic after the lows of last year.
"In a few years we see the need for around 125,000 hotel rooms, up from 82,000 at present," said Lalit Suri, president of the Hotel Association of India and chairman and managing director of Bharat Hotels Ltd.
"We are hoping for at least seven to 10 percent growth in foreign tourist inflow in a couple of years once this low phase has bottomed out," he said.
This time the hotel barons are not just looking overseas to bring in the big bucks but also catering to domestic tourists, who have shown remarkable enthusiasm for travel and kept the hotel cash registers ringing with over 30 percent growth in traffic.
The low spell in tourism last year saw no let-up in major hotel chains' plans to add around 40,000 rooms in another five years across all segments from luxury to budget to two and three-star hotels.
Right from Bharat Hotels to Taj Group, Oberoi or ITC Hotels Ltd., all have been busy adding new property or making blueprints for new projects from luxury, heritage or resorts to business class hotels.
"India has just one-fifth of the hotel rooms of neighbouring Asian destinations like Singapore, Thailand, Malaysia, Bangkok or Sri Lanka. China has a much higher capacity than India, with Beijing alone having 50,000 hotel rooms," said S.S.H. Rehman, managing director of ITC-Welcomgroup.
Once adequate rooms are available on demand, Rehman is confident the perception of Indian hospitality being expensive will be a relic of past.
Said K.B. Kachru, country head of Carlson Hotels (India): "We are planning to start 18 four and five star hotels by 2008, adding a total 1,600 rooms. In a couple of months our next Radisson hotel will be ready in Noida with 120 rooms in the first phase."
Carlson Hotels sees tremendous growth coming from small metros and pilgrim centres.
While Bharat Hotels is looking forward to two more hotels opening in Mumbai and Goa by January, taking its tally of hotels to seven, Bristol Hotel in Gurgaon, Haryana's boomtown, hopes to enhance capacity by another 220 rooms.
Consisting of 44 hotels ranging across different market segments, ITC-Welcomgroup is going ahead with plans to implement an 
15 billion-expansion plan up to March 2003 before chalking new agenda.
ITC Grand Maratha in Mumbai and ITC Sonar Bangla in Kolkata are some of the new additions.
"Our new Grand Central in Mumbai will be ready next year. We have also signed up four heritage properties in mature destinations like Dharamsala in Himachal Pradesh, which we will restore and convert into hotels. We are looking for more opportunities," said Rehman.
A key factor for tourism growth lies is improving all aspects of civic and other infrastructure that has to go side by side with better hotels, the hotel owners feel.
Rattan Keswani, general manager of The Oberoi group, told IANS: "Plans are underway for developing several new properties including Rajgarh Fort in Khajuraho. We have entered into a joint venture with the Kerala Tourism Development Corporation and hope to develop three properties there."
The Oberoi has just completed the development of a 94-room Trident Hotel on the banks of Udaipur lake at a cost of 1 billion. Another 450-room luxury hotel is coming up in Mumbai for 4 billion. It will be ready in three years.
In addition, the group has taken over the management of a 136-room hotel in Gurgaon. The hotel will now bear Oberoi's Trident brand.
The leading hotel group is finalising plans to start work on a deluxe resort in Morocco and is close to formalising deals overseas for another six resorts, a hotel executive disclosed.
"This year the Taj Group has added 500 rooms and we hope to sustain this growth," said Ajoy K. Misra, senior vice president (sales and marketing) of the Taj Hotel Resorts and Palaces.
"Depending on the growth and tourism demand, we are ready to take up more projects as capital is not a problem."
One key hurdle to sustained tourism growth is the security perception about India due to repeated travel advisories being issued by countries like the U.S. and Britain, said the hoteliers.
Source: IANS
15 billion-expansion plan up to March 2003 before chalking new agenda.
ITC Grand Maratha in Mumbai and ITC Sonar Bangla in Kolkata are some of the new additions.
"Our new Grand Central in Mumbai will be ready next year. We have also signed up four heritage properties in mature destinations like Dharamsala in Himachal Pradesh, which we will restore and convert into hotels. We are looking for more opportunities," said Rehman.
A key factor for tourism growth lies is improving all aspects of civic and other infrastructure that has to go side by side with better hotels, the hotel owners feel.
Rattan Keswani, general manager of The Oberoi group, told IANS: "Plans are underway for developing several new properties including Rajgarh Fort in Khajuraho. We have entered into a joint venture with the Kerala Tourism Development Corporation and hope to develop three properties there."
The Oberoi has just completed the development of a 94-room Trident Hotel on the banks of Udaipur lake at a cost of 1 billion. Another 450-room luxury hotel is coming up in Mumbai for 4 billion. It will be ready in three years.
In addition, the group has taken over the management of a 136-room hotel in Gurgaon. The hotel will now bear Oberoi's Trident brand.
The leading hotel group is finalising plans to start work on a deluxe resort in Morocco and is close to formalising deals overseas for another six resorts, a hotel executive disclosed.
"This year the Taj Group has added 500 rooms and we hope to sustain this growth," said Ajoy K. Misra, senior vice president (sales and marketing) of the Taj Hotel Resorts and Palaces.
"Depending on the growth and tourism demand, we are ready to take up more projects as capital is not a problem."
One key hurdle to sustained tourism growth is the security perception about India due to repeated travel advisories being issued by countries like the U.S. and Britain, said the hoteliers.
Source: IANS