Amidst the global economic slowdown, international hotel management companies have announced plans to enter India in the light of the shortage of approximately 150,000 hotel rooms across the country.

According to HVS, international and domestic hotel chains announced that they would build at least 114,000 rooms in India in August 2008; however, only some 47,000 rooms are in the pipeline as some hotel developers have halted development projects.

Nevertheless, the current downturn has offered lower cost of development and construction, and companies such as the Sant Chatwal-promoted Hampshire Hotels plan to invest approximately US$995 million by 2012 to 2013 in hotel properties in Kochi, Mumbai, Bangalore, Jaipur, Kolkata and Hyderabad. In addition, New York's Berggruen Hotels is expected to invest in five mid-market hotels under the KEYS brand in Khandala, Mahabaleshwar, Thiruvananthapuram, Ludhiana and Bangalore.

Switzerland's Mövenpick Hotels and Resorts plans to manage 15 upscale hotels in India by 2015 with the first hotel opening in Bangalore.

France's Accor Group has also announced plans to expand in India, with 48 committed hotel developments which will add approximately 9,980 rooms under the brands of Sofitel, Pullman, Novotel, Ibis, Mercure and Formule 1.
 
www.hvs.com