The Hindu Business Line : Starwood Hotels to enter India

Starwood Hotels & Resorts Ltd, one of the world's largest hospitality and leisure chains, is planning to roll out a number of its brands in India, including the Westin, `W', Four Points, and Aloft.

It is also planning on expanding its portfolio of Le Meridien hotels, which entered its fold in November 2005. The group also operates the Sheraton brands and is currently in talks with ITC Hotels, for the extension of the contract between the two brands.

Under its expansion plans, the Starwood group plans to set up a Westin Hotel in Delhi, and is in talks to open a Le Meridien property in Hyderabad.

Mr Julian Groom, General Manager, Le Meridien, Mumbai, says the acquisition by Starwood had given the Le Meridien brand the flexibility to expand. There are eight Le Meridien hotels in the country.

According to Mr Groom, the demand for rooms has kept pace with availability, increasing rates and improving the profitability of hotels. The industry, he said, was returning to the performance levels of five-six years ago, with room rates clocking 20 per cent growth year-on-year.

Mumbai industry

The hospitality industry here is once again in expansion mode, with development taking place in locations such as Lower Parel, Worli, the Bandra-Kurla Complex, and the airport. Though the geographical divide between the southern and northern reaches of the city would remain, improved infrastructure could dissipate distances and facilitate ease of commuting between these centres, he said.

Though the Le Meridien, Mumbai, with 171 rooms, does not have the inventory of other hotels in its neighbourhood, the hotel has tried to distinguish itself on its service standards, Mr Groom said.

Rationalisation of rates

As more hotels are set up and customers get their affordability index up, the market would see a rationalisation of pricing. "As people become more affluent, they will demand more luxuries, whether in the five-, three- or two-star category."

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