Tag Archives: Fairmont Raffles Hotels

Reality of Convention & Habitat Centres in India-I

Posted on by Track2Realty

By: Ravi Sinha

Track2Realty Exclusive

Fairmont Raffles Hotels, hospitality news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertySops and tax incentives goaded many developers across the country into institutional projects of Convention Centres and Habitat Centres. However, replicating Hyderabad project proved to be a far cry and successful execution has been few and far between. Track2Realty investigates why the potential of MICE segment could not be tapped by the Indian realtors.  

When the real estate market was booming and the developers looking left, right and centre for many diversified areas of growth, with the government extending all sops and tax incentives, the developers moved into various verticals with not even skill or expertise. As a result the prospects for institutional real estate, which had hitherto been seen as a government initiative in India, too looked rosy with many convention centres and habitat centres in the pipeline.

The travel and tourism industry, crying for more and more such facility, was holding its breath for the dynamic days ahead. However, after more than four years down the line the tourism segment is still in search of world class institutional projects to help attract the bigger pie of the globe trotting business community.

It would be understatement to say that the Indian realtors could not tap the potential of institutional projects. It is relatively less favored by most of the developers today. It is believed that the long gestation period and relatively lower rate of return on investments in case of institutional project as compared to commercial and residential projects keeps the developers least interested in institutional projects. Then the involvement of multiple stake holders, compounded by delays in approvals/changes in directives makes the segment less attractive.

The MICE (Meetings, Incentives, Conventions and Exhibitions) business is a key contributor to the overall institutional projects in several nations across the globe and has the potential to add to the overall development of India as a destination. As per a global hospitality research, Convention or Meetings tourism accounts for over 20% of all international arrivals worldwide. With the emergence of India as a key economic hotspot along with China, convention tourism has enormous possibilities in the country.

India, however, remains woefully inadequate in its ability to attract large international conventions. One of the biggest reasons continues to be the lack of world class convention centres in India. The Hyderabad International Convention Centre (HICC) is India’s only branded (Novotel), large scale convention facility.

.…to be continued

Potential and roadblocks co-exist for hotels-III

Posted on by Track2Realty

By: Ravi Sinha

Track2Realty Exclusive

Fairmont Raffles Hotels, hospitality news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyThe Indian strategy in the hospitality segment seems to be borne out of the demand-supply market dynamics. An industry survey estimates that the three major Indian metropolitan areas—Bangalore, Mumbai and Delhi—command some of the highest hotel rentals in the world.

The study, conducted by Indusview Advisors, found that Bangalore had the world’s highest room rentals, averaging about $500, with Mumbai ($400- 450) coming in a notch lower and Delhi ranking third at $350 plus.

Internationally, London hotels charge $300-450 while star properties in Moscow and Rome charge $260-350 and $140-350 respectively. While the situation is acute even in traditional high-cost cities such as New York where room rates spiraled up 15.4 percent last year to an average of $320.87, according to an American Express report some of the strongest surges have been in Asia.

The Indian hotel room market for 10 metros is estimated to expand at a compounded annual growth rate (CAGR) of 17% to Rs. 11,900 crore during 2010-13, according to a study by Knight Frank India. In terms of the number of rooms sought per day, the hospitality sector is estimated to grow at a CAGR of 10.3%. But at 15% growth during the period, supply is expected to surpass demand. A total of 24,211, 8,709 and 3,057 additional rooms are expected to become operational by 2013 across upscale, midscale and economy category hotels, respectively, the study said.

However, if growth prospects are driving the sector, there are roadblocks at policy and macro economic level that threaten to derail the growth. Many leading hospitality companies looking at expansion are either deferring launches or stalling projects on the back of various challenges including fund crunch and hassles in getting permits.

According to a study by consulting firm HVS, the hospitality companies had announced to add 90,000 rooms by April 2015. Realistically, industry experts say, only two-thirds of the figure will materialise by then. Of the rest, some will get delayed and others shelved.

…..to be continued

Fairmont Raffles lines up India expansion plan

Posted on by Track2Realty

Fairmont Raffles Hotels, hospitality news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyFairmont Raffles Hotels International (FRHI) has joined the list of global hospitality majors who are upbeat about the India growth story. The Canada-based hotel group is coming up with four luxury Fairmont properties, three Swissotel business class hotels and a resort in the country.

The group, which manages 95 hotels globally, is launching the Fairmont luxury brand in Hyderabad and Jaipur. The company also plans to have two more Fairmont properties — in Bangalore and Mumbai.

The 248-room Jaipur Fairmont will be launched this year, while the 350-room Hyderabad property will come up next year. In 2013, the company plans to open three Swissotel hotels — a brand targeting value-oriented business travellers — in Delhi, Bangalore and Gurgaon.

FRHI currently manages a Swissotel property in Kolkata. FRHI has chosen Goa as a destination for its Fairmont Resorts portfolio.

Fairmont is working with various partners to develop new hotels. Capricorn Hospitality Investments India and its local partner are developing Fairmont’s Jaipur property. It has partnered with MMVL Hotels, a subsidiary of Hyderabad-based real estate player Maheshwari Group, for its property in the city.

“Fairmont sees India as a dynamic, international market which has a potential to grow tremendously. It believes that with strong year-round domestic air access and new infrastructure, the outlook for tourism growth in India is excellent,” said Chris Cahill, president of Fairmont Hotels & Resorts.