Premier Inn makes its debut in India

Premier Inn, the UK’s largest budget hotel chain, has launched its first hotel in India and plans to open a further nine properties in the country during the next five years.

The company is expanding into India, where there are limited budget hotel brands, to capitalise on the country’s developing business traveller market.  Bangalore is the destination of the Premier Inn’s first Indian hotel, which has 105 bedrooms, a multi-national restaurant, bar, gym and conference room.

“India represents one of the fastest growing economies in the world today and we are confident that Premier Inn will be successful in India,” said Patrick Dempsey, managing director of Premier Inn UK.

Large Indian corporations, multi-national companies, small and medium enterprises and small privately-owned firms are all being targeted by Premier Inn in India.  “There is a huge and rapidly growing junior and middle management population that represents an excellent opportunity for us,” said Aly Shariff, Premier Inn India managing director.  “Following Bangalore, there will be properties in Delhi in 2010 and Pune in 2011.”
Premier Inn’s move into India comes 18 months after the company launched its first international hotel in Dubai.  There are now three Premier Inns in the country, with a third property opening next month.

Premier Inn, which has 580 budget hotels, with more than 40,000 rooms, throughout the UK and Ireland, is currently offering rooms in the UK for £29.

Source:http://www.caterersearch.com/Articles/2009/11/26/331070/premier-inn-makes-its-debut-in-india.html

Lalit Suri Group to spend Rs 2,300 cr on new hotels

Delhi-based Bharat Hotels, the company owning The Lalit Suri Hospitality Group, will invest Rs 2,300 crore in setting up luxury and mid-market hotels across popular leisure and business locations in India and abroad.

The company will set up nine more premium hotels by 2012, in addition to the current tally of eight. The group will spend Rs 1,500 crore on these properties. Another seven will be built for the mid-market segment.

The group had an agreement with the Intercontinental Hotels Group (IHG), the world’s largest by number of rooms, signed in 1998. But decided not to renew it last year. Only the Mumbai and Goa properties are bearing the Intercontinental name, the contract for which expires in 2011.

Since last November, all its top-line hotels have ‘The Lalit’ brand name.

Jyotsna Suri, chairperson and managing director, said: “We are setting up a total of nine hotels and all of them will be operational by 2012. About 50 per cent of the funds earmarked for the luxury properties have been spent already. We have raised the amount through a mix of internal accruals, debt securities and external commercial borrowings.”

The nine new premium hotels will be in Kolkata, Jaipur, Chandigarh, Ahmedabad, Noida, Amritsar and Dehradun, besides two overseas properties in Dubai and Koh Samui (Thailand).

The company has also built a war chest of about Rs 750-800 crore for diversifying into the mid-market segment. It will build seven properties under this fold in Pune, Drass (Jammu and Kashmir), Jalandhar, Baroda, Mundra, Ahmedabad and Bangalore, the first of which will be operational by the end of 2010.

“The idea is to have a network of 25 hotels by 2014 under the mid-market segment. We will develop properties in Tier-I and Tier-II cities. We haven’t finalised on the branding of this segment yet,” added Suri.

While the land banks for the above cities have been secured, the company will identify the other locations in due course of time. All hotels will be built and run by the company and it does not intend to enter into any management contracts, according to senior executives.

It will also look at raising funds through the capital market route in 2012, with an initial public offering. However, the management declined to provide details on the capital the company is looking to raise.

Bharat Hotels, the formerly listed entity, was delisted from the bourses in 2003 after its promoters raised their stake in the company to over 95 per cent through open offers.

“We can dilute 10 per cent in the company, which if needed can be increased to 15 per cent. We expect to have 18 hotels operational by that time which would give us better valuations,” Suri further added.

Jyotsna Suri is the wife of hotelier Lalit Suri who passed away in London of a massive heart attack in October 2006.

Source : http://www.business-standard.com/india/news/lalit-suri-group-to-spend-rs-2300-crnew-hotels/377172/

Birlas to foray into hotel industry

KOLKATA: For the first time in their close to 100-year history, the Birlas are entering the hospitality arena. The Birla Group – a part of
corporate folklore in the country, along with the Tatas – is going to set up its first hotel on a closed mill plot in Mumbai.

Although the Birla empire – spread across the various family groupings (BK, AVB, KK, CK, SK, Yash and MP Birla groups) – pretty much covers the entire business spectrum, from textiles, metals and cement to automobiles, tea, IT and media, the Birlas had never tried their hand in the hotel arena.

Basant Kumar Birla, the oldest member of the Birla family, told TOI that his group has decided to set up a luxury hotel near Worli, in south Mumbai, on unutilised land belonging to Century Textiles & Industries. “We will not run the hotel. Five big groups from India and abroad have approached us for managing it. We will get a fee, which will be revised every three years,” Birla said.

The group may also use the land for commercial real estate, the industry doyen said. “We want to optimise the value of the land belonging to Century Textiles. The value will appreciate if we develop it. We will not sell the land. The company will return 15-20% of the land to the state government, as per rules, and the rest will be developed,” he added.

Century Textiles senior president R K Dalmiya said the mill has been shut since 2006. “All the mills in the area are closed for environmental or other reasons. The mill occupies 40 acres, of which we own 30 acres. The balance is lease-hold land for which the group has an existing 999-year lease with the Wadia Group,” he said, adding that a Singapore-based architectural firm has been appointed as adviser for the hotel project.

Century Textiles has already set up an advanced greenfield textile mill with an investment of Rs 850 crore at Bharuch in Gujarat. The mill was inaugurated by Gujarat chief minister Narendra Modi in the presence of B K Birla and his grandson Kumar Mangalam Birla (chairman of AV Birla Group) in October. “The new mill alone will take care of most of our requirements,” Dalmiya said.

Source:http://timesofindia.indiatimes.com/biz/india-business/Birlas-to-foray-into-hotel-industry/articleshow/5204777.cms

IHC to set up new hotel in Bangalore

London-listed hospitality and leisure company India Hospitality Corporation (IHC) will set up a new hotel in Bangalore next year and is close to raising funds worth Rs 1,000 crore for expansion of its hotel business.

Ravi Deol, managing director – IHC, said, “In the next 12-18 months, we will be focusing on expanding our hotel business in tier II cities. We will be opening a new hotel in Bangalore by July 2010.”

According to media reports, the company is also readying a Rs 1,000-crore property fund for expanding its hotel business in the country. The firm has already invested Rs 200 crore in the hotel business through its wholly-owned subsidiary Gordon House Estates.

“We are building a Rs 1,000-crore property fund which would be utilised in expanding the hotel business in the country. A host of foreign investors have shown interest in the fund and we expect the fund closure in the next 3-4 months,” Deol added.

IHC, which currently operates its hotel chain under the brand “Gordon House,” has three hotel properties in the country – two in Mumbai and one in Pune.

Regarding the company’s acquisition plans, IHC president and COO Sandeep Vyas said, “We are looking at opportunities for both organic and inorganic growth in the country. Hospitality sector is poised for a boom and we are hoping to cash in on that.”

In 2007, IHC acquired Mars Restaurant, the hotel and restaurant company that manages ‘Not Just Jazz’, ‘By The Bay’ and ‘Pizzeria’ chains. As part of the deal, it also got the control of the airline catering business SkyGourmet and Mars Catering Services.

Earlier this week, the firm signed an agreement to manage 10 hotels of realty firm Entertainment World Developers (EWDPL), which would come up by 2011.

Further, as part of the pact, the firm will acquire the franchisee rights for Pizza Hut in central India, from EWDPL.

Source:http://www.fnbnews.com/article/detnews.asp?articleid=26429&sectionid=1

Taj, Radisson to open hotels in Amritsar

To cash in on the growing demand of hotel rooms in Amritsar, not only local players but also major national and international hospitality chains are setting up new properties in the city. Among the prominent ones are Radisson, Holiday Inn and Taj Properties, according to sources. Experts in the hospitality sector say there is lot of demand of quality rooms in the city, especially from the NRI community and foreigners, besides high-end domestic tourists.

Recently, IHHR Hospitality Private Limited announced the opening of its five-star luxury hotel, Ista, in Amritsar. Ista Amritsar is the third in chain after Ista Bangalore and Ista Hyderabad.

Speaking to Business Standard, X-Cell Hotel Consultancy President Narbir Singh said, “Being one of India’s most popular religious tourist destinations, Amritsar has vast untapped potential in the area of hospitality. On an average there is demand of 200-250 good 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. With infrastructure coming up, we expect NRIs would like to stay there for 2-3 days in order to enjoy their visit to the holy city for the Golden Temple, retreat at Wagah border, Durgiana temple etc. He added in absence of good quality rooms, people used to come in the morning and preferred going back the same day. “I am confident that these ventures by Radisson, Holiday Inn, Taj Properties will boost religious tourism as well as business prospects in the city and attract a lot of foreign and Indian travelers,” he said.

Experts also feel that since Amritsar is well connected with international flights, there is vast potential for the hospitality sector.

CII Punjab State Council Chairman Gunbir Singh said, “In 2007, we projected about 2,500 rooms would be added in Amritsar alone in next three year, but my perception is we are going to exceed the target.To support this sector, the government must encourage the industry, and also promote the tourism sector in the state.”

Source:http://www.business-standard.com/india/news/taj-radisson-to-open-hotels-in-amritsar/374980/

Duet India Hotels Invests $12M In Hyderabad VentureDuet India Hotels Ltd (DIH), the private equity firm of UK-based Duet Group, has invested $12 million in a five- star upscale hotel project in Hyderabad. The project, which comprises 210 rooms, is being developed at Gachibowli suburb, close to the IT district, of the city at a total investment of $26 million. The company will soon invest another $25 million in a hotel project in Bangalore

Duet India Hotels, which is the investor and developer of the project, will infuse the remaining amount through debt. The company has already bought the land from L&T Phoenix Infoparks for the Hyderabad project.

It is yet to finalise a hotel partner for the project, Dilip Puri, CEO of Duet India Hotels, told VCCircle.

Across five projects, the company has invested $47 million so far from its $166.5-million fund. Earlier, it has invested in projects in Jaipur, Pune, Ahmedabad and Indore. The Jaipur project is already operational and is run by Sheraton Hotels & Resorts under the brand name, Four Points. The Pune project will be operational by September 2010 followed by Indore and Ahmedabad projects in January and March 2011, respectively.

The company has also completed due diligence for two more investments, one each in Lucknow and Nashik. “We have completed the due diligence for two other projects, and will bring in equity in the next one month. These are smaller projects having equity of $3 million each for developing 3-star hotels of 100 rooms in each,” added Puri. “We are about to conclude a project at Whitefield in Bangalore, and will invest equity of around $25 million,” he said.

By the end of this calendar year, the fund will complete investments of $78 million equity across eight projects. Duet India Hotels, which has raised the fund from foreign institutional investors, plans to raise more equity for the fund and go for an initial public offering in the next two years. “We plan to raise more equity for the same fund and would be looking to do an IPO in a year-and-a-half or two years,” Puri said.

Apart from DIH, Duet Group runs another fund in India called South Asian Real Estate, which has been investing in residential projects.

Source:http://www.vccircle.com/500/news/duet-india-hotels-invests-12m-in-hyderabad-venture

Choice Hotels India Expands Hotel Presence in Delhi NCR

Gurgaon, Haryana, October 29, 2009 /India PRwire/ — Choice Hotels India has recently launched two additional properties in Delhi NCR as part of its rapidly expanding portfolio. They are Quality Inn Bliss in Gurgaon and Quality Hotel Sewa Grand in Faridabad.

Quality Inn Bliss is conveniently located in the heart of Gurgaon amidst multinational companies and premier establishments. The hotel offers 39 well appointed guestrooms with modern facilities in an ambience of unmatched comfort. “Fusion” the Multicuisine Restaurant with a show kitchen is perfect for a working lunch or an exuberant dinner. “Celsius” the Lounge Bar offers imaginative quaint cocktails and housing some of the best wines & malt whiskeys of the world. “Viceroy” state-of-the-art Board room is ideal for small meetings and ?‘Ritz I & II’ are the fully equipped banquet & conference halls.

Quality Hotel Sewa Grand Faridabad is ideally situated at Mathura Road on the highway leading from Delhi to Agra. 82 spacious rooms and suites are elegantly and tastefully decorated to suit all modern needs.. ‘Cafe Pacific’ the all day dining Multicuisine Restaurant offers an extensive selection of mouth watering delicacies to tingle your taste buds. ‘Atlantis Bar’ is a great relaxing place to unwind and choose from a fine selection of spirits and cocktails. Fully equipped banquet & conference halls ‘Royal Ball Room’ and ‘Senate’ can accommodate upto 350 guests.

Apart from these two hotels, CHI has Comfort Inn The President and Clarion Collection in New Delhi. Designed to meet the needs of today’s traveller, all these hotels ensures exceptional value, courteous service and comfortable accommodation. They are in the most convenient location for both business and pleasure.

Mr. Vilas Pawar, CEO, Choice Hotels India, said, “Choice Hotels India now has four properties in Delhi NCR. We are also coming up with 160 rooms Clarion in Greater Noida to be operational by next year. In addition to this, CHI has also signed one more property under Sleep Inn brand in Delhi. Our multiple presence in Delhi NCR speaks out the success and phenomenal growth.”

Notes to Editor

Choice Hotels India

Choice Hotels India is part of Choice Hotels International, one of the largest and most widespread lodging franchisors of the world with over 5000 hotels across the globe. Today Choice Hotels India is one of the fastest and finest growing hotel chains with 29 properties over 21 destinations in India and another 14 properties under different stages of development. These hotels are in various destinations including New Delhi, Mumbai, Chennai, Ahmedabad, Bangalore, Gurgaon, Hyderabad, Jaipur, Kodaikanal, Lucknow, Faridabad, Amritsar, Shimla, Manali, Corbett, Pune, Nashik, Haldwani, Chiplun, Tuticorin and Vijayawada. Its presence in all the gateway cities proves that the chain is widely accepted by business as well as leisure travelers who recognize and trust the brand.

Choice Hotels International

Choice Hotels International is one of the largest and most successful lodging franchisors in the world. Built on the foundation of the venerable Quality Inn? brand a pioneer in consistent mid-priced lodging, Choice Hotels today is the worldwide franchisor of Cambria Suites TM, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn brand hotels.

source:http://www.indiaprwire.com/pressrelease/leisure-travel/2009102936519.htm#at

Major Hoteliers Make Big Plans for Asia-Pacific

Two major players in the international hotel scene—Starwood and Accor—have carved out significant expansion plans in the Asia-Pacific. Starwood has opened its 150th hotel in the region, the ITC Royal Gardenia, a Luxury Collection hotel in Bengaluru, India. The hotelier has signed 23 new deals for Asia-Pacific this year; 15 are slated to open by the end of 2009.

Starwood’s hotels span 20 countries in the area, with the most significant growth occurring in China and India. Within China, Starwood is set to double its current footprint to 100 hotels by 2012. So far in 2009, the company has signed 18 new deals and opened three hotels. Among the four hotel openings in China for the remainder of the year are Le Meridien hotels in Qingdao and Chongqing, a Westin hotel in Tianjin, and a Four Points by Sheraton in Lianyungang. Next year, the W brand will strengthen its presence with the opening of W Guangzhou, and the Luxury Collection brand will make its Chinese debut.

The opportunities in India are equally promising. The country is home to 23 Starwood hotels, with another 15 under development. In 2009, two Four Points by Sheraton properties debuted, while the Westin brand has three new hotels coming on board later this year. In 2010, Starwood will launch Aloft in India.

Other development highlights in the region include the first Sheraton resort and a Le Meridien for Vietnam; a second Sheraton for South Korea; St. Regis hotels in Tibet, Thailand, and Japan; the introduction of W in Thailand and Indonesia; and the debuts of Four Points by Sheraton in Malaysia and Thailand.

Meanwhile, Accor is on track to open more than 50 hotels throughout Asia-Pacific by year’s end. To date, the company has opened 32 hotels comprising 6,155 new rooms, with China representing the largest market for hotel openings. Another 22 hotels representing 4,410 guestrooms are scheduled to open by late 2009. In addition, Accor plans to have 50 hotels in India by 2012.

This year, 21 hotels under Accor’s economy brand, ibis, will open. Ibis has also expanded to Thailand, where three properties have opened in the past year. This week, Accor announced its plans for the largest ibis hotel in Asia Pacific: the 550-room ibis Hong Kong Sheung Wan (pictured). The property is scheduled to open in early 2012.

For the 5-Star Pullman brand, 13 hotels are in operation throughout Asia-Pacific and another 18 are committed to development. Pullman officially launched in Asia in January 2008 and will expand to include 100 hotels throughout the region by 2015. Meanwhile, 17 mid-scale Mercure hotels will open this year in China, Thailand, Japan, and Australia.

Source : http://www.hdmag.com/hospitalitydesign/content_display/industry-news/e3ib70ace379b80f09ac19a6fa77c2f8f9b

Nyati Group forays into hospitality business

Nyati Group, a Pune-based real estate developer, has forayed into the hospitality business by setting up the Corinthians Boutique Hotel. Nyati Hotels and Resorts, a SPV floated by the group for this venture, has invested Rs 120 crore in the hotel. The 120-room hotel, which is located on a hill top, has been built in a Moroccan style with Greco-Egyptian elements of architecture.

The hotel has Brew House pub with a brewery, where 2,00,000 litres of fresh beer can be produced. There are plans to launch another property with 60 spa villas at Khadakvasla and build a second boutique hotel on the Pune-Bengaluru highway.

Source:http://www.hospitalitybizindia.com/detailNews.aspx?aid=6399&sid=1

Swissotel Hotels & Resorts Comes To Kolkata – India

For the first time, the international hotel chain Swissôtel Hotels & Resorts is to open a Swissôtel in India.
A management contract has just been signed between Bengal Ambuja Housing Development Limited Pvt. Ltd., one of the most reputed promoters in India, for a Swissôtel in Kolkata, which is due to open end of fourth quarter of 2009.

The new deluxe hotel will be part of City Centre – New Town shopping mall with shops, restaurants and a multiplex cinema, and has 147 rooms, each at least 32m² in size. Three restaurants, including a speciality restaurant and an open-air restaurant, a lobby bar and a poolside bar are available to guests. Facilities also include conference rooms offering 1261m² of space, a fitness centre and a rooftop swimming pool.

The management contract was signed with Bengal Ambuja Housing Development Limited Pvt. Ltd. (BAHDL), a company belonging to the prominent Neotia family, which has built up India’s largest cement business, before divesting the same few years ago. Since then the Neotia family has been focusing entirely on real estate business, the construction and operation of shopping malls, housing, commercial space and the hotel industry.

“India is the world’s second-largest nation; the numbers are on a gigantic scale,” says Meinhard Huck, President Swissôtel Hotels & Resorts. “India is set to become the world’s third-largest economy by 2020. Consumer demand is growing steadily, particularly in the cities, and the middle class, which is also growing rapidly, has ever increasing consumption needs. Against this background, we see great potential for our hotel chain and are delighted to have found in BAHDL a well-known partner that appreciates our Swiss values».

The new Swissôtel is being built in the new and developing city district of Rajarhat, which in the last few years has become home to numerous large IT and commercial companies (including  IBM, Philips, Wipro and Tata), as well as residences, schools, shopping malls, sports centres and cultural centres. The hotel is located 3km from Kolkata’s Netaji Subash Chandra (N.S.C.) Bose International airport.

Kolkata, capital of the Indian state of West Bengal, is a city of 6 million inhabitants, with a further 14 million people living in the metropolitan area, making it one of India’s five largest metropolises alongside New Delhi, Mumbai, Chennai and Bangalore. It is also the main financial centre in eastern India. The largest growth sectors are those areas that are prospering as a result of outsourcing, particularly by US companies, namely hardware and software manufacturing, call centres, publishing and healthcare. The country’s second-largest stock exchange, the Calcutta Stock Exchange (CSE), is also based in Kolkata.

Source : http://www.ftnnews.com/content/view/7105/26/lang,english/

Quinn of Ireland plans hotel in Hyd

Hyderabad: No sooner had Irish major Quinn group announced its India debut with a premium commercial realty project Q-City at Gachibowli on Wednesday, than it is already cementing plans to set up a hotel project in the same area of the city. The $2.2 billion Quinn group, which has already invested nearly $100 million in India, has acquired over 4 acres of land in Gachibowli for a hotel project, which it intends to kick off shortly. While refusing to divulge any details about the project, Quinn Property head Peter Quinn said the company would rope in one of its global hospitality partners like Hilton, Sheraton, Ibis or Crowne Plaza for the project. As we are still assessing the hospitality market in Hyderabad and working out the modalities. It is too early to discuss any specifics, Quinn said. He, however, said the company was looking at investing around $100 million each year in Indian over the next five years or so. Quinn said the company explored all the top cities in the country and zeroed in on Hyderabad as they felt it was the market with the most potential . We are now looking at other markets like Pune and Chennai as we feel they have good potential for commercial and hospitality projects, Gary Conway, acquisitions manager , Quinn Property, said. It was in 2006 that Quinn group quietly made its first foray into India by picking up land at Gachibowli for the 1.2 million sqft Q-City project, which was constructed by Indu Projects. Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=TOIH&pubLabel=TOI&pageid=13&mydateHid=17-09-2009

Leela Aims to Unseat Rivals as Top Luxury Hotel Chain in India

In a country where information technology is the largest industry, the Leela Palaces, Hotels and Resorts organization aspires  to become the best-known brand  in India’s growing hotel corridor.

Leela’s newest property is the Leela Kempinski Gurgaon in the fast-growing suburb of Delhi. Since its soft opening in April, the hotel has posted occupancy rates in the low 70s.

Leela Kempinski Gurgaon Hotel
Between July 14 and July 24, the hotel was sold out, according to hotel officials. They say guest demand in India is for 100,000 to 150,000 new hotel rooms, particularly at business-oriented properties.

A 15-minute drive from the Indira Gandhi International Airport, the Leela Kempinski Gurgaon offers 322 guestrooms and suites and 90 residences in one-, two- and three-bedroom options.

Built next to the Ambience Mall, reputedly Asia’s largest, it targets the international business traveler. It’s the first entry into northern India for Leela, the Mumbai-based luxury brand Capt. C.K. Krishnan Nair founded in the mid-’80s.

A center of business process outsourcing, Gurgaon is expected to house branches of 40 percent of Fortune 500 companies by next year, according to HotelNewsNow.com.

American Express, Microsoft, General Electric and IBM already have offices there. There’s no off-season. Rates start at 7,000 rupees (about US$145) for double occupancy.  The Leela is strategically located on the Gurgaon-Delhi border.

In Gurgaon, 90 percent of hotel business is corporate. There are 700 international business offices in Gurgaon, a brand-new city of 1.5 million on the southeastern border of Delhi, a much older city of 14.5 million.

There are 1.1 billion people in India, so the country will never be short on a work force, industry analysts point out.

Leela plans to open another five properties by 2012 in India’s destination cities, including the academic center of Pune, and Agra, a tourist magnet that features the Taj Mahal and Agra Fort.

“India is a giant engine starting to roll,” says Sanjoy Pasricha, Leela VP of sales and marketing, noting 65 percent of the Indian population is less than 25 years old.

Pasricha says that by blending traditional Indian styles based on the country’s royal past with state-of-the-art technology, Leela, the newcomer, hopes to edge out competitors, such as Taj Hotels Resorts and Palaces, Oberoi Hotels and Resorts and Trident Hotels.

Leela encompasses business hotels in Gurgaon, Mumbai and Bangalore. It also has leisure properties in Goa, Kerala and Udaipur.

However, Leela has no plans to expand beyond India–at least for now. Kempinski is its international marketing representative, a business partner that will help it realize its phased plans, Pasricha says. Leela also belongs to the Global Hotel Alliance and Preferred Hotels & Resorts.

A distinctive  Indian ambience separates Leela from its competitors, says Onno Poortier, Leela’s president. The company thoroughly researches  its locale before it builds, Poortier adds.

“The other key difference is going to be that our business hotels are newly built palace hotels reflecting the royal tradition of India,”  says Pasricha, the sales and marketing executive.

“This is true of Bangalore (where the 357-room Leela Palace Kempinski Bangalore evokes the Mysore Palace) and will be true for Chennai (the Detroit of India, where the 397-unit Leela Palace Kempinski Chennai will open next year) and New Delhi as well,” Pasricha says.

The 260-room Leela Palace New Delhi will open next fall in the city’s diplomatic enclave. Construction cost will be about US $1 million a room, including more than US $500,000 per room in land costs alone.

Source : http://www.realestatechannel.com/international-markets/vacation-leisure-real-estate/leela-palaces-hotels-resorts-leela-kempinski-gurgaon-taj-palaces-oberoi-hotels-resorts-trident-krishnan-nair-onno-poortier-leela-palace-kempinski-bangalore-1384.php

Ambuja Realty in big hospitality push

Kolkata: Ambuja Realty, the Kolkata-based real estate company promoted by Harshvardhan Neotia, is betting big on hospitality and hospitals. It is planning to invest around Rs 1,000 crore over the next five years for expansion plans.

Harsh Neotia, chairman, Ambuja Realty told DNA Money, “We are seriously looking at it and we want to expand in that area. There are bigger players than us but we want to go big in this vertical.” The company plans to open a chain of resorts in the hilly areas of West Bengal including Darjeeling and Kurseong.

The construction on these properties would start in a few months. The group is taking up construction for its hospital project at Siliguri in November at a cost of Rs 65 crore.
It is not yet decided whether the hospital would be operated under the Bhagirathi Neotia Hospital brand or under the parent group itself.

Ambuja Realty is also opening an IT park called Ecospace on an area of 1 million square feet; the first phase of half-a-million square feet is ready to be leased out and the rest of the project would be completed in a year, Neotia said.

The project cost is Rs 280 crore. The realty firm had acquired land for an IT park at Mihan, Nagpur but has not started the development due to recession. The project is unlikely to come up soon.The developer has differed from its peers’ idea of converting commercial development area into residences.

Neotia said, “There is no change in our plans we will go ahead with the same compositions as planned.”Ambuja Realty had earlier planned a hospital in a joint venture with the Elbit group from Israel.

The JV, Neotia Elbit, could not take off due to unavailability of land for the project.
Neotia said, “In West Bengal acquiring large chunk of land is a very big problem. Projects can be successfully developed if they are taken up on small chunks such as 3-5 acres or 10 acres, but development on hundreds of acres is not possible.” Now, the Elbit group has moved to set up its hospital unit in Bangalore on its own.

Ambuja is also developing residential projects. Its maiden township in Amritsar will see its next phase development this year.Also in the pipeline is the third phase development of its housing schemes in Kolkata.

On realty prices in Kolkata, Neotia said, “Prices are not falling any further. They have bottomed out and we expect it to move up from here. Though it may take some time but we see revival.”

Source :http://www.dnaindia.com/money/report_ambuja-realty-in-big-hospitality-push_1289470

Accor to invest Rs 636 cr in India for 50 hotels by 2012

New Delhi, Sep 2 (PTI) European hospitality major Accor will make equity investment of Rs 636 crore in India for setting up 50 hotels over the next 2-3 years.

“We will make equity investment of USD 130 million by 2012 to have 50 hotels with 10,400 room capacity by then. This (USD 130 million) does not include investment by our (joint venture) partners for setting up the investment,” Accor Asia Pacific Chairman and Chief Operating Officer Michael Issenberg told reporters here today.

He declined to give details on the total investment and the joint venture partners in the projects. A part of this expense has already been made in five properties currently operational in India.

Accor has a JV with real estate developer Emaar MGF and another with aviation and hospitality services group Interglobe in India. It also has project-specific ventures with several companies in the country.

Source : http://www.ptinews.com/news/260961_Accor-to-invest-Rs-636-cr-in-India-for-50-hotels-by-2012

Hotel Industry in India witnesses tremendous boom

A touch of tenderness, a helping hand, a welcoming visage… the Indian hospitality sector is certainly the most apt replication of the belief  ‘Atithi devo bhava’. Good quality products and services at affordable prices should be the USP of any successful venture – and hotels in the country boast of exactly this!

According to the world travel and tourism council, the growth in the hospitality industry is pegged at 15% every year, and with 2,00,000 rooms (both luxury and budget) needed in the country, the segment is poised for a stupendous growth.

Travel tales

While the high influx of foreign tourists has ensured huge footfalls for the sector over the years, internal tourism too has, off late, begun offering great potential. With travelers taking new interests in the country, players in the hospitality sector have had to offer the best of services, at affordable prices. Also, with the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities, thus signaling a boomtime for the hotel and hospitality segment. Several other factors such as Commonwealth Games in Delhi are fueling the need further.

The best bet

The Indian hospitality industry is projected to grow at a rate of 8.8% between 2007-16, placing India as the second-fastest growing tourism market in the world. Initiatives like massive investment in hotel infrastructure and open sky policies made by the government are all aimed at propelling growth in the hospitality sector.

“Hotel and hospitality industries are among the biggest employment generators in the country. Towards propelling its growth, while the government should confer infrastructure status to the hotel industries, several taxation issues also need to be rationalised. Further permits and licenses required for the hotel operations need to be rationalised by offering a “single window” mechanism,” says Sanjay Gupta, CMD, Neesa Leisure Ltd – the Group which boasts of providing state-of-the-art facilities and services at its hotels.

Be it Cambay Sapphire – the elegant 3 star business hotel at Ahmedabad or The Cambay Grand – the upcoming 5 star hotel in Ahmedabad that takes contemporary luxury to new heights with opulent rooms and suites, exotic spa, virtual golf, and multi cuisine fine dinning, redefining luxury is the perennial mantra in each of Cambay’s hospitality projects. Some of the Group’s forthcoming ventures include The Cambay Spa & Resort at Neemrana, Rajasthan – a proposed five star business hotel boasting of one of the largest conference and convention facilities, another venture of Neesa Leisure Ltd in Dahej (SEZ) to have 100 rooms including apartment and conference facilities and Cambay Sapphire, Jodhpur – a business hotel. Exclusive and innovative initiatives like the Cambay projects certainly focus on ensuring a bright future for the Indian hotel industry.

The government’s decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport has improved the business prospects of hotel industry in India. Also, the upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India. Couple this with the availability of qualified human resources and the hospitality sector has already got great growth prospects!

The right call

A focus on quality, behaviour-based evaluation, market choice and market response has predominantly shaped the State’s hospitality industry. Increased competition and increase in demand has consolidated the hospitality segment, whilst opening up a plethora of opportunities. Fierce competition has led to innovative ideas by hotel majors, thereby delivering impressive hospitality products and services.

This has, in turn, also prompted them to generate new lines of revenue with creative approaches, be it by reducing transaction costs, increasing productivity or promoting traditional Indian values.

A pioneering initiative, herein, is the concept of mixed-use developments, wherein the real estate typically includes an apartment block of a commercial block along with a hotel. Still in its nascent stages in India, the concept offers inspiring potential. Also, the entry of multinationals and Indian hotel chains expanding internationally only reinforces the segment’s untapped business potential.

Combining unparalleled growth prospects and unlimited business potential, this industry is certainly on the foyer towards being a key player in the nation’s changing face.

Source : http://economictimes.indiatimes.com/Corporate-Trends/Hotel-Industry-in-India-witnesses-tremendous-boom/articleshow/4934663.cms

The Leela Kempinski Hotel and Residences opens in Gurgaon, Delhi

The Leela Palaces, Hotels and Resorts has announced the launch of its first property in northern India — The Leela Kempinski Hotel and Residences — in the business district of Gurgaon, Delhi (NCR). The property is located within 15 minutes drive from the Indira Gandhi International Airport and is on the Delhi-Gurgaon border. The hotel offers 322 luxuriously appointed guestrooms and suites and 90 Residences in configuration of one, two and three bedroom options.

The Leela Kempinski, Gurgaon is the first property among the upcoming properties of The Leela Palaces, Hotels and Resorts in north India and is the first managed property of the group. The rooms feature modern amenities and facilities including Wi-Fi internet connectivity, Internet Protocol phones, LCD Television with Blue Ray Player, Bose iPod Dock, electronic safes and ergonomic mattresses. Two exclusive floors of The Royal Club will offer guests personalised and complimentary services with added Royal Club Lounge facilities.

Among dining alternatives is a unique 225 capacity restaurant with live kitchens, Spectra;

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5541&sid=1

Marriott To Add 57 New Hotels In Asia Over Next 4 Years

HONG KONG -(Dow Jones)- Marriott International Inc. (MAR) said Monday it plans to open 57 new hotels across Asia in the next 48 months, mostly in China and India, despite the global economic slowdown.

Marriott said in a statement it plans to open 21 new hotels in China, 24 in India and eight in Thailand in the coming four years.

“While we’ve experienced our most robust growth in China, India and Thailand have demonstrated significant strength in recent years,” said Ed Fuller, president and managing director for international lodging at Marriott.

Those 57 new hotels will provide 15,510 guest rooms, it said.

Marriott operates 109 hotels, or 39,313 guest rooms, in Asia. The company operates more than 3,100 lodging properties globally.

Source : http://money.cnn.com/news/newsfeeds/articles/djf500/200902160528DOWJONESDJONLINE000131_FORTUNE5.htm

Dholakia group to invest Rs 200cr in hotel business

Despite the ongoing slowdown in the real estate and hospitality sectors, Mumbai-based Dholakia group plans to launch 12 new business class hotels over next three years at an investment of Rs 200 crore.

The group, which already operates two hotels in Mumbai under the brand ‘Orritel’, will have operations in the rest of Maharashtra, Gujarat and Karnataka over the next three years.

Speaking to Business Standard, Dholakia group managing director Amit Dholakia said, “We plan to provide four-star category hotel services at three-star rates. The combination of a hotel, a spa and a fashion boutique will help us attract more visitors.”

The group had recently launched its new hotel Orritel at Hinjewadi, the information technology hub of Maharashtra, in Pune.

The hotel has 60 executives rooms, 12 suites and three grand row houses along with a spa and other facilities.

“We are looking at Ahmedabad, Mumbai, Pune and few other locations in Bangalore to set up new hotels. Rudra is a popular spa chain in Mumbai and we plan to extend it on a franchisee basis to a number of cities in north India,” Dholakia added.

http://www.business-standard.com/india/news/dholakia-group-to-invest-rs-200cr-in-hotel-business/10/48/347150/

Hospitality sector: Present tense, future uncertain

For hospitality sector, which began the year with uncorking of champagne, is closing 2008 on a dry note, jolted not only by the global economic downturn but also to a great extent by the Mumbai terror attacks.

Looking back, the year had a perfect start with the then Finance Minister P Chidambaram announcing special five-year tax holidays for setting up of two, three and four-star hotels in his Budget speech.

What followed was investments worth Rs 34,000 crore by as many as 25 companies — existing hospitality groups and new real estate player entrants — through the course of the year, not only for lower segment hotels but also for five-stars and luxury hotels.

The happy state of affairs for the sector in the start of the year was also reflected by the increase in the number of foreign tourist arrivals in India. According to the Ministry of Tourism, January saw a rise of 10.4 per cent, February 11.9 per cent and March 14.6 per cent in foreign arrivals.

The party was, however, short-lived as the global financial crisis cast its long shadow over the industry thereafter. In April itself, the arrivals came down to 9.6 per cent and got worse with each passing month to an all-year low of 1.8 per cent in October, though slightly improving to 2.1 per cent in November.

Adding to the problems was the 60-hour siege of Mumbai by terrorists, in which three of the city’s top hotels – Taj Mahal Palace & Towers, The Oberoi and The Trident – turned into battlefields.

Even travel advisories by various countries, including Canada, Australia, Israel and the US, after the attacks did little to help the sector that was already shaken. However, on December 21, in a typical resilient Indian style, the Trident and the Tower wing of the Taj re-opened.

While it will take a while for inbound tourists volumes to swell after the attacks, thankfully foreign tourist arrivals during the January November 2008 stood at 4.84 million as compared to 4.48 million during the corresponding period of 2007.

In terms of foreign exchange earnings, 2008 also fared better as compared to last year. The January-November period saw a total of Rs 45,647 crore this year as against Rs 39,281 crore in the same period in 2007, up 16.2 per cent.

Despite the setbacks, India managed to attract global firms to invest in its hospitality sector. French hotel group, Accor signed a joint venture pact with InterGlobe Enterprises to set up a series of economy hotels.

UK-based InterContinental Hotels Group also announced plans to open 20 hotels in India with over 5,000 rooms under its different brands, including the InterContinental, Crowne Plaza and Holiday Inn, to complement its existing portfolio of 13 hotels.

Also, US hospitality major Hilton entered into an agreement with India’s largest real estate developer DLF Ltd for managing seven new hotels. Besides, Sri Lanka’s leading conglomerate Aitken Spence acquired four Indian hotels and four resorts with 1,400 rooms in Delhi, Madurai, Trivandrum, Cochin and the Andaman Islands.

Homegrown real estate developers also saw the opportunity and announced plans to enter the sector. Parsvnath Developers tied up with ITC Welcomgroup for developing 50 hotels over a three to five year period with an investment of Rs 2,500 crore across the country.      Unitech also said it would invest Rs 2,500 crore for setting up 35 hotels.

Emaar MGF has announced a Rs 15,000-crore spend for developing hotels in value, mid-market and luxury segments with a total of 26,000 rooms by the end of 2010, besides signing an agreement with the Marriott Group for developing properties in Kolkata and Amritsar.

In their bid to outdo the industry rivals, existing hospitality players announced plans for as many as 250 new properties in various segments with investments to the tune of of Rs 11,000 crore.

These include The Leela Group (Rs 2,000 crore for six hotels), Bird Group (Rs 1,600 crore for 10 hotels), Landmark (Rs 700 crore for three hotels), The Oberoi Group (10 hotels, investments not disclosed), Lemon Tree (Rs 2,150 crore for 18 hotels), Royal orchid (Rs 500 crore for 10 hotels), Ginger Hotels (Rs 100 for 70 properties) and Uppal Group (Rs 500 crore for seven hotels).

Even the government was not far behind saying it would invest Rs 500 crore in developing 20 tourist destinations across the country over the two-three years, apart from initiating steps to improve security arrangements.

The question that remains to be answered is at a time when travelers have tightened their purse string due to the economic slowdown and security concerns, how would the Indian hospitality sector fare in the year to come? Well, that only time will be able to tell.

Source : http://profit.ndtv.com/2008/12/25143039/Hospitality-sector-Present-te.html

Maharashtra government to assess HRAWI proposal for FSI increase in Mumbai

The Maharashtra government is in the process of assessing a proposal made by the Hotel and Restaurant Association of Western India (HRAWI), with respect to increasing floor space index (FSI) in Mumbai. HRAWI’s proposal requests an FSI of five to accelerate hospitality development in the city.

Speaking to Hospitality Biz about the development, S P Jain, President, HRAWI states, “To find a desirable location in the city at an affordable land price, has always been a hurdle for potential hospitality developers. With higher FSI, hoteliers can ensure their properties’ vertical development. This in turn, will help to ease room rates in the city and hotels will be able to offer rooms at much cheaper rates.” The state government is likely to take a decision on the same within a month, Jain adds.

As the economic downturn has a strong effect on hospitality development in the city and projects are being shelved, the increase in FSI is expected to aid developers. Presently, Mumbai faces nearly 50 per cent shortage in rooms and the increase in FSI at this stage will help cater to room requirements post 2010, opines Jain.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=2858&sid=1

Landmark puts on hold hospitality play in India

BANGALORE: The Landmark Group, a Dubai-based retail chain, has put its plans for the hospitality sector in India on indefinite hold. The group,  which had plans to set up 30 mid-market hotels in India, is learnt to have asked some of the property developers it was in talks with for possible tie-ups to look for new partners. A Landmark spokesman declined to comment on the development.

While announcing its hospitality venture Citymax Hotels India last year, Landmark had said it planned to set up over 30 mid-market hotels in 10 years, with the first four-star hotel to come up in Indore in September 2008. The company confirmed that the new hotel had not come up yet but declined to say if it was delayed or shelved.

The development reflects the prevailing sentiment in the hospitality industry. “There is uncertainty in the overall market sentiment for the hospitality sector, especially for greenfield projects. Capital intensive projects are either put on hold or are put on a slow track,” said Ernst & Young real estate and hospitality analyst Ajit Krishnan.

While the principal reason for the uncertainty in the sector is the economic slowdown, the recent terror attack in Mumbai has aggravated risk, he said.

Citymax had said last year that it would invest Rs 325 crore by 2012 to set up 12 hotels in cities including Bangalore, Pune, Gurgaon and Hyderabad. Landmark Group, owned by NRI businessman Micky Jagtiani, entered India almost a decade ago with its department store chain Lifestyle. Since then it has forayed into value retail with Max chain and tied up with Dutch retail giant SPAR for hypermarkets.

Source :  http://economictimes.indiatimes.com/News/News_By_Industry/Services/Hotels__Restaurants/Landmark_puts_on_hold_hospitality_play_in_India/articleshow/3815334.cms

Unitech Plans to Invest 2,500 Cr in Hotel Industry India

Realty major UNITECH LTD (BSE:507878) plans to invest about Rs 2,500 crore (US$508 million) to develop 35 hotels across India over the next seven years. Unitech managing director Sanjay Chandra said the firm would develop 35 hotels in the next six to seven years and already had land in many cities at prime locations.

The hotels would be located in the national capital region (NCR), Kolkata, Chennai, Goa, Mysore, Bangalore, Hyderabad, Chandigarh, Siliguri and Assam.Of the total planned hotels, about 50 per cent would be located in Kolkata and the NCR, Chandra said.

Source :  http://www.indianrealtynews.com/hotel-industry/unitech-plans-to-invest-2500-cr-in-hotel-industry-india.html

Hospitality Business Attracts Northern Realtors

Realty majors in the North like DLF, Uppal and Amrapali Group have started executing their plans in the hospitality business quite aggressively. DLF, which had signed a JV with California-based Hilton Hotels in 2006, is on an intense land hunt in Bangalore and Hyderabad to set up five-star hotels. In Kolkata, the company has already acquired a six-acre plot to build such a hotel by early 2011. The joint venture, DLF-Hilton, plans to set up 75 hotels and service apartments over the next five years. Delhi-based Uppal Group, which recently joined hands with Marriott International to operate two five-star luxury hotels, is now planning to enter the budget hotel segment by early 2009. Amrapali, also from Delhi, has tied up with Choice Hotels to launch its Clarion brand hotel in Greater Noida. The hotel is expected to come up in the next one and a half years at a cost of Rs. 120 crores.

Source : propertybytes.com

Check-ins drop 10% in Business Hotels

The slowdown in some segments of the economy may be beginning to impact the hospitality industry. Occupancy levels at hotels catering to business travelers have dropped 5-10% since January-end, with major impact seen in Bangalore and Hyderabad, analysts said.

Though industry experts dub this a cyclical phenomenon, there are others who believe there is more to the dip than just the seasonality. A slump in the stock markets, rising input costs and weakening dollar have led to a cut in travel and lodging costs by the companies.

And if this continues, business hotels may be in for tougher times. May-June is a lean phase for business travel since its vacation time. Awadhesh Garg of Kotak Securities Ltd, said economic activities have been on the decline since January-end.

“Due to rising costs, companies are facing pressure on their earnings; intentional cost-cutting is leading to a 5-10% drop in occupancy levels for business hotels in June,” Garg said.

Though a full-fledged slowdown has not hit India Inc yet, fears of one are impacting business, say experts. Also, major expenditure-cutting exercises by information technology sector companies, which are hurt by rupee appreciation, have begun to impact Bangalore and Hyderabad hospitality segments.

Pradeep Kalra, senior vice president, marketing, Sarovar Hotels, said business has been affected by slowdown fears. “Another reason for the dip in occupancy is the hike is airline fares. This has impacted corporate travel.”

MAN Industries to diversify into real estate sector

MAN Industries India, a line pipe manufacturer and part of UK’s MAN Group, today announced its foray into real estate with a newly formed subsidiary MAN Infraprojects in Mumbai, where property prices have almost doubled in the last two years. It plans to invest 10 billion rupees over three years to develop seven real-estate projects in Mumbai, Navi Mumbai and Indore. The company expects realisation of 40 billion rupees from these projects which will have a total built-up space of 10 million square feet. In Phase I, MAN Infraprojects Limited plans to develop three projects two in Mumbai and one in Navi Mumbai with a total built-up area of over one million sq ft. In Mumbai, the company is planning two commercial projects in Bandra and Vile Parle. In Navi Mumbai, MAN Infraprojects Limited will develop a mixed-use township complete with a five-star hotel, a IT-cum-commercial centre besides a luxury residential block. The site is located opposite the D Y Patil stadium.

Agra getting a Massive Makeover

Agra is getting a massive makeover and coming out of the time warp to embrace modernity, replete with marvelous shopping malls, resorts, townships and commercial centers.

Keeping pace with the private sector, the Agra Development Authority (ADA) has charted out an expansion plan with a new 4,000-acre hi-tech township of international standards on the outskirts of the city.

The township would include, among other things, different hubs like an educational hub, a recreation hub, a Sports complex, a world-class auditorium, a medical city, an IT park, a golf course and many more things. In fact, in order to meet the rush of the tourists all through the year, the ADA has also made provisions for the construction of more 3, 4 and 5 star hotels.

Talking to reporters, Anurag Srivastava, vice-chairman, ADA said, ‘‘We have also made a provision of developing 300-400 acres amusement parks within the township. Once we finish acquiring the land we will start auctioning the plots and with a huge demand already existing in this sector, we are sure to make this international city a huge success.’’

Forming part of the famous ‘Golden Triangle’ (Delhi-Jaipur-Agra), this tourist centre is a hotspot for big real estate players. The mad spree among private builders in launching major residential and commercial projects in the city visualizes its future growth.

In fact, the ADA is also not far in following in the footsteps of the private builders. ‘‘Out of the 4,000 acres of the township, a major chunk, say around 1,000 acres would be for residential purposes,’’ said Srivastava.

However, providing proper basic infrastructure has so far been the bane of ADA, with private builders alleging that the government agency is only creating new slum areas without basic civic amenities. But Srivastava said, ‘‘we have big plans for the Taj city.

BPTP Makes Part Payment of Rs 955 cr for Noida Land

Delhi based realty firm BPTP has made a partial payment of Rs 955 crore towards the first instalment of Rs 1,237 crore for the Noida land deal, the largest in the country. The company said it was in the process of raising more funds to pay the balance Rs 282 crore in a month. The final deadline to deposit the first instalment is July 12. BPTP had bagged the Noida project for Rs 5,006 crore in March, outbidding larger rivals DLF, Omaxe and Ansal.

The Rs 955 crore – sourced through private equity deal and internal accruals – includes Rs 100 crore deposited by the firm as earnest money with the Noida authority. BPTP had recently raised $160 million (about Rs 640 crore) through stake sale in its four SEZs. BPTP managing director Kabul Chawla said a private equity investment in the parent company was in the pipeline to raise funds to pay for the balance of the first instalment.

Mr Chawla said the 95-acre Noida project was on track. “It will be one of the best commercial and retail locations in the country. We are trying to replicate the best business and shopping destinations of the world such as Canary Wharf of London, More London and Roppongi Hills, Tokyo,” he said. The company plans to build 45 office buildings, 2 million sq ft of retail space and two hotels with a combined capacity of 550 rooms at its Noida site. The total cost of construction for the project will be around Rs 3,500-4,000 crore. A total of 15 lakh sq ft of office space and a hotel will be built in the first phase, likely to be completed in three years. Seventy of the total 95 acre of the project will be used for roads and greenery.

The company has hired UK’s leading architectural firm Foster + Partners for the project. It has also roped in Atkins Intelligence for traffic management, dosAdos for landscape and Burohappold for services and utility in the project.

IHC to spend $1 bn on buying Hotels

Indian Hospitality Corporation (IHC), a joint venture of Gordon House Hotels, Mars Restaurant and SkyGourmet Catering formed last year, plans to spend as much as $1 billion to acquire hotel groups and restaurant chains.

The company has hired Ravi Deol as chairman and chief executive of Mars Restaurants, the hotel and food services division of IHC, to initate acquisitions. Deol is the former managing director of Barista and ex-chief executive of FieldFresh Foods.

“We are looking to add 2,000 hotel rooms across 17 cities, including metros and towns such as Lucknow, Amrtisar, Raipur, Chandigarh among others. We may acquire hotel groups having 5-7 properties. We are also looking at acquiring restaurants or restaurant chains and then take them to the leadership position,” Deol told Business Standard.

All these acquisitions will be done by Mars Restaurant. “We may go for a rebranding of an existing hotel chain as and when we acquire them,” Deol said.

IHC has formed a $200-million ‘hospitality opportunity fund’ and $220 million worth of warrants to be converted into equity. The balance amount will be raised by selling equity or through borrowings, IHC executives said.

Mars Restaurants has brands Such as Tendulkars’ (a 50:50 joint venture with cricketer Sachin Tendulkar), China Joe, The Pizzeria, Dosa Diner among others, while Gordon House is a venture of Mars Restaurants and currently has three properties in Mumbai and Pune. The acquisitions will add to the portfolio of Gordon House hotels.

The Indian leisure and hospitality industry is set for high growth, according to the World Travel and Tourism Council. According to industry estimates, the Indian hotel and hospitality industry generates foreign exchange earnings of Rs 35,000 crore each year in addition to Rs 10,000-12,000 crore generated from Indian customers.

The market size of branded fast-food and dine-in restaurants is estimated at over Rs 600 crore. This segment is grwoing in double digits annually attracting players like IHC, industry experts said.

According to sources, popular north Indian restaurant chain Nirulas along with Clarks hotel chain may be on the radar of IHC for acquisition and subsequent re-branding.

On the air-catering front, IHC is looking to expand SkyGourmet to 11 cities from six metros at present. SkyGourment will soon set up its air catering facilities in Kochi, Jaipur and Amritsar among other cities.

“We will also expand our air catering services globally when Kingfisher goes international. We are already catering for Jet Airways, Kingfisher Airlines, Air India Express, Indian Airlines, Malaysian Airlines and Air France. We are looking at providing catering to Emirates and Lufthansa too,” Deol said. SkyGourmet was incorporated in 2002 and is headquartered in Mumbai and employs about 1,150 people.

Serviced Apartments Check in as Hotels Lag

Having filled the breach left by an acute shortage of hotel rooms in India, the serviced apartments segment is coming into its own with the entry of corporates aiming for consistent quality standards as they try and tap into a lucrative market.

A measure of the shortage is the fact that India has about 1.1 lakh hotel rooms compared to 1.35 lakh rooms in just the Chinese commercial capital Shanghai. The Planning Commission estimates the scarcity at 1.5 lakh rooms by 2010.

On the other hand, there are no reliable estimates of the number of serviced apartments, largely dominated by unorganised players. “Serviced apartments have found favour so far only as an offshoot of corporate needs and/or due to shortage of hotel rooms in most cities. In today’s supply shortage scenario, it seems like whatever one can build will get filled up, even if only through word of mouth,” says Cushman & Wakefield Hospitality director (South Asia) Akshay Kulkarni.

However, he predicts tariffs to fall by 15%-20% in 4-5 years as branded products become popular and unbranded ones die out. “The occupancy in the unbranded segment of the serviced apartments will actually drop as more and more limited-service, economy, branded products come to the fore. Without doubt the per-room realisation for the developer or the manager will not be the same in the next 5 years,” Mr Kulkarni adds.

Experts also see international players digging into the Indian market. An example is Brigade Hospitality’s tie-up with the European group Accor for the upcoming Mercure Homestead Residences in Bangalore’s Koramangala suburb.

“Our occupancy levels are 75-80% throughout the year. We have 120 keys on offer and plan to have an additional 126 at Mercure Homestead. With our inventory increasing in a year or two, we see the occupancies settling down at about 75%,” Brigade Hospitality CEO Vineet Verma says.

However, there are those who believe that it would be too optimistic to expect the good times to continue for the serviced apartments business. “One has to look at the growth of the popularity of serviced apartments in context of the huge investments being made in hotels now,” says Taj West End regional GM P K Mohan Kumar.

The market-share of hotels is bound to increase as there are about a dozen new hotels coming up in Bangalore alone, which will add 4000-5000 rooms to the existing inventory by 2012, he says. “As the mismatch in inventory gets corrected, and mid-market as well as budget hotels gain territory and share of the market, serviced apartments will become the last choice since hotels are now looking to accommodate longterm stayers also.” Being able to provide services tailored to the needs of customers is the USP of serviced apartments and the ones that can do so consistently have no need to worry, Brigade’s Mr Verma says.

“At serviced apartments, one is willing to change and customise most services to suit the guest’s specific needs. The space one gets is well planned and addresses the basic requirements of an extended stay, like providing a well-equipped kitchenette etc.”

Furthermore, as hotel room tariffs sky-rocket, service apartments are seen as an economical option. “Currently our choices are not really governed by the full range of products,” feels Mr Kulkarni.