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Brief Published: 27 Apr 2012

India Hotels in Short Supply


According to the World Travel and Tourism Council (WTTC), India is expected to have 1.7 billion international and domestic travellers in 2021 – an increase of more than 900 million on current levels.

In order to meet this demand, India-based research institute HVS – in its report Hotel Room Supply, Capital Investment and Manpower Required by 2021, published in March 2012 – suggests that the country will need to add approximately 180,000 additional rooms at a cost of $25.5bn (£15.9bn) for construction, and about 280,000 personnel for operations.

The HVS report also highlights that up until this point the Indian government has invested relatively little in tourism and its infrastructure requires significant improvement. India nevertheless remains a hotspot for hospitality and leisure brands to enter and grow in, as demonstrated by the likes of both the home-grown hotel brands Leela and Park, and international chains including Starwood and Marriott. Furthermore, while hospitality investment has largely tended to be at a luxury level, this dramatic increase in demand for hotel rooms should trickle down to also provide an opportunity for mid-range and budget brands to flourish in the future global economic powerhouse.