Since the hospitality sector was previously considered a part of Commercial Real Estate (CRE) and was subject to the same risk exposure, the cost of such debt was high. In September 2009, new guidelines on CRE released by the Reserve Bank of India, asserted that the hospitality sector would no longer be treated as a part of CRE and risk exposure would be based on the profile of the borrower and the nature of the project.
An emerging segment to attract the hotel industry of India has been the MICE (Meetings, Incentive, Conventions and Exhibitions) segment as it has the potential to change the face of several upcoming Indian cities. The overall international visitors are likely to grow many fold due to MICE as it allows for the sale of several hundreds or even several thousands of room nights as opposed to the transient travellers who utilise only a few room nights at a time.
The emergence of the secondary and tertiary cities led to an aggressive increase in hotel development and provided avenues for expansion of hotel brands, which were previously dependent on new opportunities in just the five main cities.
Amidst cut-throat the hospitality vertical of Indian real estate has done well with hotels across the budget segment witnessing upward movement. Track2Realty exp0lores the emerging trends and also addresses the game changers that has influenced in the past and promises to do so in the year ahead.
High real estate costs, lack of any tax incentive and bureaucratic hurdles are huge problems for the growth of the hospitality industry that is one of the country’s top job earners, a survey has revealed.
Saffron Group, the Delhi-NCR based real estate group, which has recently forayed into hotel business by launching the maiden hotel property – Comfort Inn Saffron Kiran at Faridabad, NCR, plans to make more investments in the hospitality sector primarily in Northern India.
Hiranandani Group on Friday, September 16, announced it was setting up a 200-bed multi-specialty hospital in Thane city, expected to be operational in the next two years.
The Hero Group of automobile makers on Monday, September 5, announced its foray into the hospitality sector.
Impresario Entertainment and Hospitality Pvt Ltd, the Mumbai-headquartered company which runs a chain of fine-dining restaurants, has raised Rs.48 crore or $10.5 million from strategic investor Mirah Hospitality and Food Solutions Pvt Ltd.
Mumbai-based Silvex Realty Limited with services in construction, real estate and infrastructure has forayed into the hospitality industry.