As a result of India's unique hospitality business model which places a high emphasis on food and beverage facilities, 'select service hotels' in the mid-market segment do not exist.

According to industry estimates, food and beverages account for around one-third of a hotel's overall revenues and the total ancillary services, including the renting of banquet halls, spas and nightclubs, in a five-star hotel could account for approximately 45% of a hotel's business in India.

Due to the nature of the hospitality landscape in India, mid-market hotels such as Courtyard by Marriott features elaborate food and beverage services.

Additionally, HVS India has pointed out that the high real estate costs in India, which stand at around 35% to 40% of total project costs, are also one of the reasons for international hotel brands having to take a higher positioning than their global standards.

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