Nov 29, 2006

Indian hospitality sector

Seeing the huge opportunity in India as a global tourist hub, many international players are entering the Indian hospitality segment.

The international players are partnering with Indian real estate players to set up hotels in the country to take advantage of the favorable demand supply gap. Currently, the Indian hotel sector is facing acute shortage of rooms across all business segments in all the cities.

While, Europe's hotel major Accor has formed a joint venture with Emmar to set up 100 budget hotels in the next 10 years, Hilton has signed with DLF to set up 75 hotels. Also players like Dawnay Day,Golden Tulip, Four Seasons are scouting for opportunities in India.

Though in the shorter period, this will not affect the Indian hotel majors, however in the long-term, this will increase the competitionfor the Indian players.

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