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expansion 2013-09-02

Are Hotels on the expansion route?

Corporate life and global tourism creating room for expansion of hotels in the country.

By Deputy Features Editor
Are Hotels on the expansion route?

With the growth in the number of corporate and business class travelling from one country to another, the Hotel industry has witnessed a tremendous growth. Hotels are expanding in and around the country to provide their customer a world class feeling.

Chef Gautam Mehrishi, Corporate Chef, Sun & Sand Group of Hotels, says “We have several acquisition lined up though we are not building new properties currently but we are looking into renovations and franchisee of the existing properties. We have planned to open a hotel in Goa in near future.”

Speaking on the industry trends, he elaborated “a lot of leisure travel, local preferences, loyal customers and corporate level meetings are the current trend at our hotel. Global tourism is also another reason behind the expansion because people are becoming much more aware about the world, they want to travel and want to organise meetings at their favourite hotel and restaurant.

According to a report published in Economic Times dated June 16:  International hospitality chain Hyatt Hotel Corporation will bring all of its seven brands in India in the next three years to increase footprint here.The chain that had entered India with Hyatt Regency in Delhi 30 years ago will open three new hotels in India this year that will take its total room capacity to 5,300.

It is targeting not only the metros but also high growth tier I and tier II cities and the upcoming resort and leisure destinations for its growth in the country.

In the same lines, a press release by Carlson Rezidor Hotel Group said “The group achieved strong growth in India in 2012 with 13 hotel openings and 13 new signings, sealing its position as the number one international hotel operator in India among other hotels and earning industry accolades along the way.”

Carlson Rezidor closed the year-2012 with a total India portfolio of 63 hotels in operation and 44 hotels in development.

Carlson Rezidor’s expansion in India also gained added traction with the signing in April (2012) of a strategic alliance with Bestech Hospitalities to develop a network of 49 Park Inn by Radisson hotels in north and central India by 2024.  Under the agreement, Carlson Rezidor and Bestech will invest USD 42 million in a joint venture to develop the first two hotels. Park Inn by Radisson Gurgaon Sector 88 and Park Inn by Radisson Chandigarh and Mohali.

 “We have forged new alliances, signed multi-property deals and grown our portfolio of opened and pipeline hotels. Carlson Rezidor remains confident in the potential of the Indian market and we foresee great opportunities to further strengthen our position in 2013,” says the release.

Berggruen Hotels, famously known as the parent brand to Keys Hotels, a leading chain of business hotels has also announced the launch of its new upscale hotel brand ‘Keys Klub’ in the 4 and 5 star categories.

Speaking on the unveiling of the new brand, Mr. Sanjay Sethi, Managing Director and CEO, Berggruen Hotels, says “This heralds a new chapter in the journey we started in 2006. After having extensively studied the consumer and having successfully established Keys Hotel chains across India, we are delighted to announce our foray into the upscale category.”

 Talking about the problem faced during expansion, Mr. Mehrishi, adds “Associate requirements and attritions are the biggest issue during expansion. Training is another major problem and also traps of local supplies as the rates are going higher day-by-day due to inflation and unnecessary hike by the suppliers. No matter the problem, the hotel industry is on a boom.”

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