As recently as 10 years ago , most hotel chains were only in India ’ s biggest cities , charging higher prices compared to surrounding countries . In smaller cities , independent hotels were often travelers ’ only choice , says Manav Thadani , founder and chairman of consultancy Hotelivate .
Fast-forward to today and the country ’ s booming economy is enriching younger generations , changing travel patterns in the process , Thadani says . Rather than families taking one annual summer vacation , this generation is more willing to go on smaller , multiple trips with their friends , both in India and internationally .
“ There has been a shift in the thought process about traveling ,” he says .
Luxury chains like Oberoi used to see occupancy of 80 % foreigners and 20 % Indians , but the ratio has shifted to 35 % to 65 %. “ And the room rates haven ’ t changed . The Indian traveler is willing to spend a decent amount of money for the lifestyle he wants ,” Thadani says .
Although India ’ s hospitality sector is seeing growth from in all tiers of accommodation , budget and mid-range sectors are leading , says Vijay Thacker , director , Horwath HTL – India .
India ’ s
PIPELINE
Q3 2018 ( projects / rooms )
PIPELINE BY STAGE : Q318 Q317 Under construction 120 / 17,571 126 / 20,157 Starts next 12 months
37 / 6,013 41 / 5,807
Early planning 65 / 10,201 63 / 10,365 Total pipeline 222 / 33,785 230 / 36,329
TOP FRANCHISE COMPANIES BY ROOMS : Q318 Q317
Marriott International 50 / 8,052 75 / 13,163 IHG 36 / 6,175 34 / 6,528 AccorHotels 20 / 3,582 26 / 3,960 Hilton 18 / 3,329 18 / 3,242 ITC 25 / 2,694 21 / 1,890
MID-PRICED DEMAND In the budget sector , Oyo started out not unlike AirBnB , coordinating small guesthouse with lodgings in the eight-to-10-unit realm , with prices ranging from US $ 15 to US $ 25 . But now the company is getting to the budget and mid-market hotel space , Thadani says . There ’ s fierce debate in India if Oyo is really a hotel company . ( Oyo did not respond to interview requests .)
Regardless , Oyo “ took the unorganized sector and gave it an organized feel ,” Thadani says , later adding , “ I think they
FRANCHISE COMPANIES WITH THREE OR MORE PROJECTS IN THE PIPELINE :
Staywell Hospitality Group Sarovar Hotels & Resorts Brigade Hospitality Services Leela Palaces Hotels & Resorts Samhi Hotel Private Fuijita Kanko
Source : Lodging Econometrics
March 2019 hotelsmag . com 27