Hospitality Industry in India

The Indian Hospitality Industry has emerged as one of the key industries driving the growth of the services sector and thereby, the Indian economy.

The Indian Hospitality Industry over the last three years, has been withnessing a remarkable phase in performance and has continued the same in the former part of the year 2008/09. One of the key reasons for the increase in demand for hotel rooms in the country was the boom in the overall economy and substantial growth in sectors like information technology, telecom, banking and finance insurance, construction, retail and real estate.

The coming years are expected to see a large quantum of new hotel supply entering the Indian market. A substantial proportion of these hotel are expected to be branded and of international quality in product and service offerings. Today, hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016.

According to an industry report, Hotel industry in India currently has supply of 110,000 rooms fuelling hotel room rates across India. According, to estimates demand is going to exceed supply by at least 100% over the next 2 years. To overcome, this shortage Indian hotel industry is adding about 60, 000 quality rooms, currently in different stages of planning and development which should be ready by 2012.