Starwood Hotels and Resorts Worldwide Inc has targeted to operate 50 star hotels in India by 2010. Thus, this initiative of the US-based hotel group is likely to add 8,000 to 10,000 rooms to the country's hospitality industry in about four years. Starwood recently set up its regional office in Gurgaon.
India has the potential to emerge a prospective market for the hospitality industry, with demand for about 1,00,000 additional rooms by 2010.
The hotel chain is planning to introduce its major brands like Westin, W Hotel and St Regis across major metros, secondary and tertiary cities in India, said sources in Starwood Hotels in India. The group recently established its first hotel brand Westin in Gurgaon.
Starwood is currently in the process of integrating its newly acquired brand Le Meridien in the country. The group will expand the brand's quantity to 15 from the present eight, also by 2010.
"Starwood will be operating most of its hotels in India through management contracts. However, the group would apply its discretion also to own a few of them," said sources.
Sheraton, Four Points and Luxury Collection are the other well-known brands of Starwood globally.
The domestic tourist traffic, which was 40 crore in 2005, is growing at 15 per cent. Besides, about 40 lakh (4 million) foreign nationals tour the country every year.
As a result, major hotel groups operating in the country like the Taj group, Oberoi, ITC, Leela, Hyatt and Mariott are on an expansion spree here.
Shortage of rooms in a city like Bangalore propels the ARR (average room rates) to as high as Rs 16,000 during the peak season (October-December).
Starwood's new office in India will be headed by Stephen Ford, vice-president and area managing director, South Asia (India, Nepal and Bangladesh). Ford had held a similar position in his previous posting in Indonesia.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group
