What Lies Ahead for the Indian Hotel Industry?
Going forward, the biggest challenge, given the present supply scenario, will be the availability of quality sites for hotel projects. Site location, accessibility, visibility and proximity to key demand areas are critical factors for long-term feasibility of hotels and lack of good sites would have a negative impact on the supply front. The real estate market, too, has seen its best times in the last two to three years, and existing land prices across most cities are somewhat prohibitive, especially for stand-alone property developers. HVS International would like to point out some emerging trends that are likely to have a long-term impact on the hotel industry in India. Firstly, India is in danger of becoming an expensive hotel market. Luxury hotels of international standards are beginning to charge the U.S. equivalent of $300 to $400. However, there are a number of mid-market and first-class hotels representing similar rates in markets such as Bangalore and Hyderabad. While this doe
