| Mr.
Ramesh Chandra, Chairman of Unitech Ltd has announced
that four hotels are already being built. Another ten
will be under construction by the end of the year. Four
of these hotels will be operated by Bethesda, Maryland-based
Marriott, the biggest hotel chain in the world.
Indian per capita income has risen 86 percent since
2000, spurring Marriott, Starwood Hotels & Resorts
Worldwide Inc. and InterContinental Hotels Group to
build new properties. India may be one of the top five
destinations for business travelers in a decade from
now, according to the London-based World Travel &
Tourism Council.
'There is a shortage and there is going to be a shortage
for at least the next six to seven years,' Chandra said.
'The most difficult part is getting a piece of land.
In future, hotels will be put up mostly by real estate
companies.'
There are 50,000 luxury rooms in the country at tariffs
ranging from 5,000 rupees ($124) to 15,000 rupees a
day, with an overall room shortage of about 33 percent.
Room tariffs have risen about 40 percent in the past
1 1/2 years on higher occupancy and demand.
In the luxury segment, people don't mind paying any
price and there is nothing like a lean season anymore.
Hotels make money not just on the rooms but also on
food, leasing of facilities for conventions and other
services.
Unitech already has hotels under construction at Kolkata,
Noida and Gurgaon, on the outskirts of New Delhi. It
is also building executive apartments in Gurgaon that
will be run by Marriott, says Chandra.
The world's biggest hotel operators are seeking to
expand in China and India. 'We will probably experience
higher occupancy rates in India,'' Geoff Garside, Marriott's
executive vice president for the Asia-Pacific region
and Australia, said on July 13. 'Occupancy in India
will probably outpace China over the next four to five
years.'
The company is still working on project funding, which
will be through a mix of its own money and borrowings,
Chandra said.
Unitech's competitor DLF Ltd., the country's biggest
developer by market value, has tied up with Hilton Hotels
Corp., the second-largest U.S. provider of rooms, to
build hotels in the South Asian nation.
Source: http://www.bloomberg.com/
|
