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Room for more: Marriott, Indian Hotels to expand

Hospitality in India is set for a major boost with hotel chains planning to add more rooms to their kitty. In big expansion moves, top US hotel chain Marriott International and Indian Hotels — the company that owns the Taj chain of hotels — will add more hotels.

business Updated: Jan 13, 2011 21:34 IST

Hospitality in India is set for a major boost with hotel chains planning to add more rooms to their kitty. In big expansion moves, top US hotel chain Marriott International and Indian Hotels — the company that owns the Taj chain of hotels — will add more hotels.

Marriott expects revenue per available room for India to increase by 10 to 12% in 2011, as against 8 to 10% last year.

“The growth will be driven by both, an increase in occupancy and rates,” Rajeev Menon, area vice-president, India, Malaysia and Maldives.

India and China together contribute around 75% of Marriott’s Asia-Pacific revenue, said Simon Cooper, president and managing director, Asia Pacific.

It has increased average room rates by 5 to 10% for 2011.

The company has 12 operating hotels in India and plans to add six more under management contract this year, translating to a net addition of 1,400 rooms.

Meanwhile, Indian Hotels Co Ltd plans to execute a pipeline of 43 projects over the next 36-48 months, managing director Raymond Bickson said. This will result in addition of 10,000-12,000 rooms. “The majority of these (addition) will be in India. We have planned growth for Ginger, Gateway, Vivanta and Taj. But outside India, it will be just with Taj.”

While growth in 2011 would be spread across all its properties, the emphasis would be on expanding its budget category under Ginger brand. “Ginger for us is a value proposition,” he said.

The company plans to increase the number of Ginger hotels to 150-200 this decade from the existing 30, he said.