Amritsar sees a flurry of star hospitality chains

An unprecedented increase in the number of tourists to Punjab’s Amritsar in recent years has prompted many national and international hospitality chains to set up businesses in that historic border city.

It’s either a fully-owned establishment or one set up in association with local players. The city has attracted many hotels in three-, four- and five-star categories that are under construction and likely to be operational soon.

Among the prominent four- and five-star hospitality endeavours coming up in Amritsar are Radisson, Holiday Inn, Ramada and Marriot. Experts say there is a lot of demand for quality rooms in the city, especially from the NRI community and foreigners, besides domestic tourists.

The flurry began two years ago. In 2009, IHHR Hospitality announced the opening of its five-star luxury hotel, Ista. In fact, Ista Amritsar was its third chain — after Ista Bangalore and Ista Hyderabad.

In the same year, international hospitality chain Best Western announced the launch of Best Western Merrion, a 40-room hotel at Amritsar along with Armaan Resorts.

Industry chambers are upbeat; ditto, their former functionaries. Gunbir Singh, a past chairman of CII Punjab State Council, says Amritsar has enough potential for the hospitality sector. “Currently we have about 3,000 rooms in the star category. Lot of hospitality chains are making their presence there,” he told Business Standard. “Given the pace, we expect some 5,500 rooms to come up by next year. Also, at present we have about 300 rooms in the four- and five-star category. By next year, there would be an addition of around 450 rooms.”

X-Cell Hotel Consultancy president Narbir Singh says Amritsar has vast untapped potential in the area of hospitality given its reputation as one of the country’s most popular religious and tourist destinations. “Currently, on an average, there is demand of 300-350 quality rooms, especially in the five-star category from foreigners and NRIs. So in order to serve that segment, major chains are planning to set up their properties,” he adds.

With infrastructure coming up, “we expect the NRIs wanting to stay there for 2-3 days in order to enjoy their visit to the golden temple, the daily retreat at Wagah border and the Durgiana temple among others.”

Adds Gunbir Singh: “To support this sector, the government must encourage the industry, and promote the tourism sector in the state. We need better air connectivity with the rest of the world.”