Luxury hotel brands plan major thrust in India

The hotel industry has been bucking the recesionary fears of its global counterparts, with luxury hotel brands announcing aggressive expansion plans.

Though there has been a sharp decline in occupancy rates, the expansion trend seems to indicate a growing confidence in the sustainability of India Inc. On an average hotels need a 54-per cent occupancy to break even.

The new investment in the hotel industry has been spurred by the government's decision to bring in hotels under the infrastructure category, with a five-year holiday from holiday from income tax for two- , three- and four-  star hotels as well as for convention centres with a seating capacity of 3,000 plus capacity in the National Capital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar constructed between 1 April 2007 and 31 March  2010.

Three international hotel chains have announced expansion plans in India in the last few days.

Marriot International
Marriot International has unveiled a plan to triple its hotel portfolio in India by 2012. The US-based hospitality chain manages more than 2,800 properties (130,000 rooms) across the world under brands like Ritz-Carlton, JW Marriott, Renaissance, Residence Inn and Courtyard.

Of the scheduled seven Marriott hotels, one will be JW Marriott luxury hotel and Marriott Hotel & Convention centre and the rest will be set up as Courtyards, a mid-market hotel brand by the multinational hotelier.