destination tional markets. Apart from this, some of the developing nations provide a good platform for the Indian hoteliers to start their ventures as the real estate cost there is not too high and the supply for the hotel rooms is lesser than the demand.” K a ndha ri iterate s that she ha s always tried to seek the first mover advantage in most of her business and has had a decade long fruitful relationship with Carlson for its two star Radisson Blu properties in Noida and Ludhiana.
Most sought-after destinations Interestingly, apart from the UK and the US, East Africa too, has emerged as an interesting business opportunity for the Indians. A raft of established players like Sarovar Hotels and the Bangalorebased Zuri Hotels & Resorts are eyeing growth here. Zuri Hotels & Resorts,
backed by investors from Middle East, already operates a resort in Mombasa Kenya and is looking at constructing more hotels in the region. In fact Africa, say developers, is a key market where a lot of Indian companies are expanding. Sarovar Hotels is already operating two hotels in Dar es Salaam and Nairobi positioned as upscale hotels and is looking to expand further besides looking at opportunities in the Middle East. Martin believes that there are other potential and emerging markets for the Indian hoteliers that are economically viable. These include Sri Lanka, Vietnam, Cambodia, Laos and Myanmar which share borders with India and therefore could have some strategic ties. Mongolia, according to the hotelier, also has potential to be an interesting market for The Lalit London
destination vacation. The hotel industry in India, adds Westin’s Sharma, is going through an interesting phase. While Indian investors are eyeing growth overseas, the attractive land cost in tier two and tier three cities is attracting foreign chains to establish a toehold in the country’s mid-market hospitality sector. “The widening demand-supply gap in India’s smaller towns is making international brands rush in to offer services at different price points,” says Sharma. Another strong reason for the hoteliers high-powered expansion plans abroad, say experts, is that once Indian hotel firms achieve critical mass in the domestic market, they will look at international opportunities. Indian Hotels Company Limited (IHCL), the company which owns the luxurious Taj Group of hotels in India and abroad, and is the second biggest in India by the number of properties, has bought properties in Boston, New York and San Francisco. It has also forged management ties with properties owners in South Africa and Egypt. In other words, after having established a strong and sizeable pan-India presence, the real challenge for the hospitality players is to get to be known in the foreign market. Experts say Indian companies are looking for stand-alone properties in the US and Europe, which are up for grabs following losses they made during the global slowdown, and also to use them tap into the growing breed of Indian travelers. Thus the move for overseas expansion is also driven with the idea of tapping into the growing market of Indians traveling abroad. An estimated 10 million Indians travel for leisure and official visits every year. Outbound travel has grown by 7-10 per cent every year since 2009 with about 11 million Indians going abroad annually. Most leading international hotels have set shop in India and are introducing their brands across all categories. These hotel firms, say trade pundits, have strong loyalty programmes that help them drive occupancies into their hotels not only from international but domestic guests as well. ■ by Neeta lal
October 2012 hotelscapes
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