Hotel industry sees sharp fall in new room supplies


Supply of new hotel rooms in India is set to slow sharply in the next few years because of capital starvation and a shift in investment from hotel projects to other real-estate assets that offer quicker returns, say industry executives.

Addition of rooms in the organised hotel sector has already slowed down due to an oversupply in the market and a drop in average room rates, which has turned investors away. After expanding two-and-a-half times between 2006 and 2013, fresh supplies to grow at a much slower pace of 32% during 2013-17, hotel consultancy HVS predicts.

The supply of rooms hitting the market now is from projects announced between 2009 and 2011. Most hotel owners are in a waitand-watch mode. An upcoming 5-sta ..

Read more at Economic Times



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