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Hotels push to meet India room shortage

13 Apr 2009

A number of major international hotel chains are gearing up expansion plans in India as part of a drive to meet an estimated shortfall of 150,000 rooms across the country a third of which are in the upscale and luxury sector.

Major hotel chains like Hyatt Hotels and Resorts, France’s Accor Hospitality group and Marriott International are adding an estimated 4,889 rooms by the end of 2010 alone.

With many companies and corporations seeing India as an expanding market, hotels are also grabbing hold of this opportunity to increase supply into one of the fastest developing economies in the world.

Hyatt will be adding a total of 1,569 rooms with the launch of its hotels in India:

Brand/Name        City            No. of rooms    Year
Park Hyatt           Hyderabad    310              2010
Grand Hyatt         Goa             306               2010
Grand Hyatt         Pune            325              2010
Hyatt Regency     Chennai        333               2010
Hyatt Regency     Pune            295               2010

Hyatt will also be launching more of its brands in Mumbai, Vizag, Ahmedabad, including the cities mentioned above over the 2011 – 2013 period.

In addition, Hyatt will be introducing its newest brand, Hyatt Place in 2011, across Gurgaon, Hyderabad, Mysore, Lucknow, Indore and Mangalore.

Hyatt Place is a hotel brand targeted at the upper mid-market and has been launched in USA, but not in Asia.

Accor is setting up the following properties in India, adding a total of 1566 rooms:

Brand/Name              City            No. of rooms    Year
Mercure Bangalore      Bangalore    522                2009
Homestead Residences
Ibis Pune                    Pune           522                2009
Novotel Mumbai          Mumbai       522                2009

Juhu Beach

Accor will also be expanding its brands – Sofitel, an upscale luxury brand, Pullman, Novotel, both targeted at business travellers and meetings, Mercure and Ibis, targeted at the mid-market – across India in cities like New Delhi, Chennai, Kolkata, Hyberabad, Mulund, Gurgaon, Lavasa, Goa, NCR, Ahmedabad, Jaipur, Nashik, Kochi, including the three cities mentioned above by 2012.

Formule 1, Accor’s basic  budget brand, will be launched in Hyberabad, Kochi, Bangalore and Kolkata, with 425 rooms at each site.

Marriott will be opening the following hotels in India, adding a total of 1,754 rooms:

Brand/Name                      City             No. of rooms    Year
JW Marriott Hotel               Bangalore     320                 2009
Pune Marriott Hotel            Pune             426                2009
& Convention Centre
Marriott Gurgaon               Gurgaon        199                 2009
(Courtyard)
Marriott West Pune            Pune              153                2009
(Courtyard)
Marriott Hyderabad           Hyderabad      193                2009
(Courtyard)
Marriott Ahmedabad          Ahmedabad    164                2009
(Courtyard)
Marriott Mumbai               Mumbai           299               2009

International Airport (Courtyard)

The Marriot Courtyard is targeting the mid-market in Asia. The brand recently launched Marriott Shanghai Xujiahui, making it the seventh Courtyard opened in China, also marking its presence as the 800th Courtyard hotel globally.

In addition to the seven hotels opening in 2009, Marriott International will also open properties in Kolkata, New Town, Amritsar, Noida, Chennai, Chandigargh, including cities mentioned above through 2012.

Another major hotel chain IHG (InterContinental Hotels Group) is planning to add a total of 7,600 rooms by launching 31 properties in India over the next few years.

This will involve IHG’s three brands – InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, and Holiday Inn Hotels & Resorts developing in cities such as New Delhi, Bangalore, Chennai, Cochin, Kolkata, Mumbai and Pune.

Mövenpick Hotels & Resorts’ first hotel in India, Mövenpick Hotel Bangalore will open next year and the group anticipates five or six new properties over the coming five years.

Apart from the giants that are expanding in India, other hotels chains that are setting foot in India are Swissôtel Hotels & Resorts (Switzerland), Mövenpick Hotels & Resorts (Switzerland), Berggruen Hotels (New York), Shama Group (Hongkong), Jumeirah Llc (United Arab Emirates), Hampshire Hotels and Resorts Llc (Sant Chatwal).

Europe’s Corinthia Hotel group, Hongkong’s Langham Hotels International and US’s MGM Mirage Hospitality group are also in negotiations about bringing their brands to India.

Sandy Goh

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