The country’s hospitality sector is poised for a significant upturn over the next six months as various indicators point towards the sector gaining momentum, according to Ajay K. Bakaya, Executive Director of Sarovar Hotels.

“We have had a prolonged sluggish situation in the hospitality sector due to various factors including economic slowdown. But various reports, including that of the World Bank, IMF point towards a growth of over 6 per cent this year. This will add to the momentum,” he said.

Speaking at a press conference here today, Bakaya said, “The average occupancy rate in the country is about 60-65 per cent with some pockets having higher levels and few others showing lower level of business. But in the next six months, situation will get better post the elections and formation of a new Government.”

The Sarovar Group, which manages a chain of over 61 hotels across the country and two properties abroad, has a pipeline of 59 projects over the next three-four years. “We are poised to add at least six more properties within the next three months, including at Tekkadi, Chennai, Gandhi Dham, Jaipur and Bhiwandi,” he said.

The country’s hospitality sector currently has about 1,10,000 rooms, up from 45,000 rooms in 2008. It is projected to add about 50,000 rooms over the next five to six years. If the country achieves a growth rate of about 7 per cent, the entire inventory will be utilised, he explained.

“Most hotel chains invest during downturn and get ready for the upside. They are familiar with the cyclical nature of the industry. There are couple of markets such as Hyderabad, Jaipur, Delhi NCR and Pune, where there could be more supply than it could be utilised in the immediate future. But this will change soon,” he said.

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