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| Global hotel majors line up to enter India |
| Swaraj Baggonkar / Mumbai Apr 03, 2009, 00:03 IST |
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Global hotel chains are lining up to open properties in India at a time the sector is grappling with falling occupancy levels and declining average room rents, forcing local developers and hoteliers to defer projects.
Companies, including MGM Mirage Hospitality, Wyndham Hotel Group, Langham Hotels International and Corinthia Hotels and Resorts, are finalising plans to launch their brands in the country in the next two-three years. Hotel chains such as Dubai-based Jumeirah Group, Movenpick Hotels and Resorts and Swissotel Hotels and Resorts are also close to finalising their plans for India.
Industry experts say as many as 37 international hotels brands are knocking at India’s doors.
“India is one of the biggest growth markets in the world. We will build 15 new hotels in the country in five destinations,” Jean Gabriel Peres, president and chief executive officer, Movenpick Hotels and Resorts, said on the sidelines of the Hotel Investment Conference – South Asia (HICSA).
The world’s largest gaming company, MGM Grand, which forayed into the hospitality sector with three premium luxury brands, is finalising its India plans. The company has held discussions with Indian real estate players for this.
Micheal Evans, executive vice-president, global development, MGM Mirage Hospitality, said, “We are focusing on Asia, especially India, for growth opportunities. We are in advanced talks with our Indian partners for launching all our brands in India.”
Bellagio is MGM’s super luxury brand, on a par with a Four Season property, whereas the MGM Grand is positioned a tad below that, and can be compared with the Grand Hyatt, according to Evans.
The company is building properties in Mumbai and New Delhi to start with, which can become operational in the next three years depending on the realty partner.
The Wyndham group, which operates the Ramada brand, a four-star hotel in India, is also planning to launch its Days Inn and Super 8 brands. “We have a robust plan in the pipeline for the Ramada brand. In addition, we will bring some of our other brands,’’ said Sunil Mathur, director, international development (Indian Ocean).
In all, the company plans to add 50 hotels of three brands in the next three years. It will bring other brands at a later stage.
Similarly, Hong Kong-headquartered Langham Hotels is looking to take full advantage of the favourable economic scenario in the country, where raw material and construction prices have been sliding continuously. The country, which is constructing a property at Pune’s Koregaon Park, is eyeing further expansion in the country.
Helmut Knipp, senior vice-president (development), Langham Hotels International, said, “Although the Indian market is growing at a slower pace, it can go a long way. We have to look at developers who have a steady income rather than depend on just real estate. With the cost of construction down, this is perhaps the best time to enter India.”
Conrinthia Hotels and Resorts, a lesser-known small brand, is also keen to have hotel properties in the country. “The company is currently looking at India as a potential market”, said a senior official from the company.
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