India’s new Prime Minister Narendra Modi is seeking to boost inbound tourism. Taking cognizance of the improved business climate, Bloomberg News reports that international hotel chains are expecting improved occupancy rates in the mid-market segment of the second- and third-tier cities and towns of India, and are aggressively planning to set up new properties.
The owner of Holiday Inn, Intercontinental Hotels Group, which has 18 hotels in the South Asian country, plans to add 46 more over five years. Clarence Tan, senior vice president of development for Asia, Middle East and Africa said in an interview, “I am excited about the new leadership in India and the progress expected with it. It’s been rocky for a while, but I don’t think you can ignore India with its emerging middle class and huge labor force.”
Wyndham announced the signing of 10 properties in India on October. 10, while Starwood will almost double the hotels it operates in India by adding more than 30 hotels to the existing 40 in the country. Carlson Rezidor Hotel Group plans to open more than 130 new hotels in India over the next 10 years.
“Occupancy levels are likely to increase in the coming years with rising foreign tourist arrivals and strong domestic tourist volume,” said P R Srinivas, a director of hospitality at Cushman & Wakefield Inc.’s local unit in Gurgaon near New Delhi.