Realtors embrace the hospitality sector
India is becoming the popular destination for tourism in recent decade. Statistics reveal that it is ranked among top five destinations to visit, thus making it truly incredible. With new openings in industry, entrepreneurship and in field of medicine, India’s tourism has shown a steep rise in recent years. The entrepreneurs, investors and tourists are seeking India as their next favorite destination.
This boom in tourism has become sine-qua-non to hospitality sector. But the country’s hospitality sector falls short to accommodate them. The hotel industry is short over one lakh room across the nation. At present as good as 185 hotels are under development to bridge this huge gap. Big investors and developers are grabbing best of opportunities. Big names as omaxe, parsvnath, DLF, emmar-MGF consortium and unitech are leaving no stones unturned to make their next venture more magnanimous. These bulls are working as major catalyst in hospitality sector. India is the flavour of all seasons, this keeps the hotel industry busy all the year round. This trend was observed in last 3 years resulting in $6 billion forex earning. This growth expanded to secondary cities too.
Ambujas reality group chairman Mr.harshvardhan attributes it as a risky sector. The returns could be short term as well as long term. Real estate is the major key component in hospitality that needs expertise and juveniles have no place. Latest trendy projects are integrated ones capturing other avenues too. Realtor who undertakes integrated townships would probably be more inclined to hospitality sector. So far the realtors had been dwelling more on residential and commercial structures.
But with opportunities open they are ready to explore IT parks, SEZ and others. Encouragement from government through land banks, 100%FDI in hospitality sector, public-private partnership projects and many others could be witnessed.
Tourism has attained in the status of industry. MD of emmar-MGF Mr.Shravan sees immense potentiality in hospitality space. In order to match 14% growth in international arrivals and 20 to 25% in tourism the developers have entered the verticals and hotel industry.
The Unitech group with more than Rs8,500crore investment, plans for more than 30 hotel projects. The chairman of the group further added that the key areas deciding factor are site location, accessibility, visibility and proximity. These are subjected to the long-term feasibility of hotels. Limited availability of quality sites puts a check on these projects.
This sector is gaining momentum and emerging prominent. More ventures are coming up as need was observed by existing hotels, to fill prevalent gap in demand-supply and for other events too. Management skill is required to operate this field. Entering into alliance or giving charge to professionals is the best solution. If viewed from another perspective hotel industry could be considered as creating assets that will yield in long run.