Hong Kong-based Shangri-La Hotels and Resorts plans to focus on the southern market to expand its footprint in India. The international hospitality chain that signed management contract deals for opening two hotels in Bangalore is now looking at the Chennai market for expansion.

“Chennai is a city we are looking at. But we want to find good partners who will be compatible with our standard of functioning,” Farhat Jamal, Area Manager and General Manager, Shangri-La Hotel, Mumbai, told Business Line .

The hotel group that currently owns and/or manages 80 properties across the world under the Shangri-La, Kerry and Traders brands will be opening its first Bangalore hotel by the third quarter of next year.

The hospitality group recently opened a 389-room hotel in Mumbai five months ago. This was its second hotel in India after the Delhi hotel which opened in 2005.

“We have had an average occupancy level of 46 per cent for the Mumbai hotel over the past five months, which is a decent figure to start with. The Shangri-La Delhi hotel has an average occupancy level of 75 per cent,” Jamal said.

The hospitality group is focusing on the MICE (Meetings, Incentives, Conferences, Exhibitions) segment in India. According to industry estimates, the MICE segment in India is growing at around 20 per cent annually and the segment contributes no less than 20 per cent of the hotels’ business.

“The MICE market is growing at a fast pace in India. This has generated a huge demand for more hotel rooms and big convention centres. In fact, there is a need for about 1.90 lakh additional rooms for the India market,” Jamal added.

While the group has significant presence in Asia, it is now spreading its footprint in UK with a Shangri-La hotel coming up shortly in London.

Shangri-La hotel group has a substantial development pipeline with upcoming projects in mainland China, India, Mongolia, Philippines, Qatar, Sri Lanka and the UK.

comment COMMENT NOW