India has the Second Largest Pipeline in Asia
April 19th, 2007 - Posted in General NewsIndia has 181 hotels / 31,319 rooms in the Pipeline averaging 173 rooms per project. There will be a flow of 4 and 5 Star projects in the major cities, but most of the future development opportunity is expected to be mid-market and economy construction located in the suburban “new cities†and office park developments that house so many of the call center and “back of the house†service operations that are driving India’s economy.
Bangalore with 27 hotels / 5,893 rooms has the largest concentration of development. Five other cities follow with between 13 and 19 projects each: Hyderabad, Chennai, Mumbai, Pune, and Gurgaon.
India is an important strategic target for international hotel companies who have a roster of mid-market brands and may not have been able to participate in the wave of high end development in other Asian countries. These companies are aggressively seeking development and financing partners who might help them accelerate their brand distribution. Many international companies headquartered in the region who have experience in these markets are creating new labels to take advantage of the opportunity they see in the mid-market and economy sector.