Hospitality

Slump in hotel industry seen to be brief


CHENNAI/ KOLKATA 
Hotel operators in India are pressing ahead with their expansion plans, undeterred by the worst economic slowdown in a decade that has eroded their earnings and value of their shares.

ITC Ltd, Asia’s second-biggest cigarette maker by market value and a franchisee of the Sheraton brand in the South Asian country, is developing at least 18 projects, Nakul Anand, chief executive of its hospitality business, said in an interview. Sterling Holiday Resorts India Ltd will double its rooms in the next three years, while Indian Hotels Co. Ltd, the owner of the Taj brand hotel chain, plans to spend Rs.200 crore in the next 18 months.

“The hotel industry is going through a little rough patch and this is a temporary lull,” said Anand. “As soon as the economy picks up, our business will pick up. In the next one year, it’s going to be tough and the results of the hotel companies show that.”

Full report here Mint

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