Hospitality sector poised for a significant upturn
According to Ajay K. Bakaya, Executive Director of Sarovar Hotel, country’s hospitality sector is poised for a significant upturn over the next six months. He added that there has been a prolonged sluggish situation in the hospitality sector due to various factors including economic slowdown. A lot of reports including that of World Bank and IMF point towards a growth of over 6 per cent this year.
Bakaya, in a conference, points out that average occupancy rate in the country is about 60-65 per cent with some pockets having higher levels and few others showing lower level of business. He expects the situation to get better in next six months with the polls getting over.
The group manages a chain of over 61 hotels across the country and two properties abroad. The group is looking to add at least six more properties within the next three months, including at Tekkadi, Chennai, Gandhi Dham, Jaipur and Bhiwandi. The sector, in whole, currently has about 1,10,000 rooms, up from 45,000 rooms in 2008. In next five to six years, it is expected to add about 50,000 rooms.
In this sector, usually investment happens in downturn.
Source: Hindu Business Line
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