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Our Bureau

Chennai, Aug. 9 Anticipating continued growth of the tourism sector, three of the leading domestic hotel chains — The Indian Hotels Co Ltd (which owns the Taj brand), ITC Ltd (with its Welcomgroup chain) and EIH Ltd (Trident brand) — are increasing their footprint, either on their own or through management contracts.

The three companies are developing properties or have signed management contracts for hotels that will open in the next year or two. They are also refurbishing some of their existing hotels.

The companies anticipate tourist arrivals to continue to increase, despite issues such as high inflation, rising crude prices and higher interest rates.

However, the companies in their 2007-08 annual reports voice concern over the state of infrastructure.

According to their annual reports, foreign tourist arrivals went up 12 per cent to close to 5 million in 2007-08. The first four months of 2008, according to Indian Hotels Company’s annual report, recorded an 11.9 per cent growth in tourist arrivals at just over two million, over the corresponding period in 2007. Thanks to this growth in the tourism industry, the hospitality industry benefited with occupancy rates in hotels at close to 80 per cent and room rates going up by 22-25 per cent, in 2007-08.

Indian Hotels Company said that in 2007-08 it made commitments by way of acquiring properties on lease, entering into tie-ups for equipping hotels being built by partners and executing a number of management and technical services contracts.

It signed up management contracts for hotels in Pune, Kolkata, Puducherry and a service apartment in Pune.

On the international front, the company signed management contracts for properties at YAS Island — Abu Dhabi, Ras Al Khaimah Saraya Islands - UAE, Doha in Qatar, and Cape Town in South Africa. All these new hotels would start functioning in the next few years.

Indian Hotels has identified wildlife safari lodges as a growth area. It opened lodges through joint ventures at Bandhavgarh and Pench, in Madhya Pradesh and will open similar high-end lodges in Kanha and Panna by October 2008.

Under the Ginger brand, Indian Hotels Company will open hotels in New Delhi, Ludhiana, Goa, Mangalore, Ahmedabad and Guwahati while management contracts are in place for hotels in Jaipur, Katra, Lucknow and Tirupur.

ITC has said that construction is progressing as scheduled on super luxury hotels in Bangalore and Chennai. Six properties are under development under the Welcom Heritage brand.

In its annual report, EIH has said that in the next three years, at least 10 hotels will be opened in India and abroad. Construction on a 440-room Trident in Bandra-Kurla in Mumbai was underway and the hotel would open in the third quarter of this financial year. Construction on an Oberoi luxury hotel at Gurgaon, which EIH would manage, was on schedule and this would open in 2009.

A 320-room Trident hotel at the Bangalore International Airport, in a joint venture with Larsen & Toubro, was under construction and it would open in 2010.

EIH would manage this hotel too. A 225-room Oberoi luxury hotel and a 290-room Trident hotel were under construction in Hyderabad. Both these hotels would be managed by EIH.

More Stories on : Outlook | Hotels | Tourism

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