Accor is expanding its network in India with 48 hotels that include brands like Sofitel, Pullman, Novotel, Ibis, Mercure and Formule 1, adding around 10,000 rooms. “Almost five years ago, we made a commitment to launch and grow our business in India to include Accor’s core brands and have 50 hotels by 2012. We are well on our way to achieving this ambition,” said Accor Asia-Pacific chairman and COO Michael Issenberg according to a news report by ET.
Chicago-based Global Hyatt Corporation, operating in India since 1982 and having full-service hotels like Hyatt Regency, Grand Hyatt and Park Hyatt is planning 20 new properties. These would include six Hyatt Place hotels. Around 6,000 rooms will be added as part of the expansion. The company will also target tier II and III cities with its new upper mid-segment brand, Hyatt Place.
“We have completed more hotel transactions in India in the past year than any other time in our 25-year history,” said Steve Haggerty, global head of real estate and development at the Global Hyatt. Marriott is also setting up 24 new properties in the next few years, with room inventories exceeding 10,000 rooms. Royal Orchid, which currently has 12 hotels and 1,000 rooms, is adding 1,000 rooms in the 4-5 star categories within the next 3 years.
Meanwhile, hotels are offering special packages, discounts and daily room rates to tackle the drop in occupancy, which now stands at 65-70% against the past year’s 85%.
The hotel industry has been witnessing a slowdown since November last year, with leisure and corporate travel taking a huge hit after the Mumbai terror attack. However, resort destinations such as Kerala, Jaipur and Goa have bucked the trend. The oversupply in cites like Pune, Hyderabad and Bangalore has also affected the room rates and occupancies. Moreover, India Inc’s cost-cutting moves contributed to the decline in room rates, experts feel.
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