Indian Hotel Review Report – Vol. 8
By Vijay Thacker on April 4, 2014
Horwath HTL and STR Global have pleasure in presenting a detailed overview of the Indian hotel market.
“2013 was a tough year – demand and room rates were stressed by a slow economy and the cumulative impact of continued supply growth since 2009; rising development and operating costs added pressure on margins and debt service ability. In turn, service quality has perceptibly declined and chinks are apparent in newly completed products where achieved quality is compromised – delayed projects carry decor suited for a 2010 opening but out of sync for a 2013 opening. Low returns, high land costs and interest rates, viability pressures and poor business confidence have slowed development activity. Slow operations, owner cash flows, delayed openings and drop in development pace have hurt hotel management companies.”