The Federation of Hotel and Restaurant Associations of India (FHRAI) estimates that as compared to the present 97,000 hotel rooms in the country, India will need 30,000 additional rooms in various categories over the next three years. The current growth of hotel rooms is less than 2,000 rooms a year, and with high occupancy rates of 77%, hoteliers have doubled tariffs in the last two years.

With demand far exceeding supply, Indian majors are on an expansion binge. Foreign banks like Citigroup, Morgan Stanley and Goldman Sachs are also investing in the Indian hospitality sector attracted by the 20%-25% return on investment that can be achieved.

Read the full article on INRnews.com at the link below:
http://www.inrnews.com/indianrealestate/2006/10/investments_in_indias_hotel_se.html

By INRnews Correspondent

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