India's hotel projects stall

BTN News
Tuesday, 28 July 2015
More than 100 planned hotel projects in India - including some belonging to major chains - have stalled because the sector is suffering overcapacity.

Property consulting firm JLL India's md Mandeep Lamba said occupancies and average room rates both are under pressure, leading to reduced profitability for most hotel chains - while high borrowing costs of 13-14 per cent are adding to the sector's problems.

International hotel chains Starwood Hotels and Resorts, Hyatt Hotels, Marriott International and AccorHotels are among those affected.

JLL India data shows about 30 Hyatt Hotels projects are on hold, as are 18 Marriotts and 17 for AccorHotels. Starwood has five.

Hotel occupancies in India declined from about 75 per cent to about 60 per cent between 2011 and 2014, according to KPMG International.

India's hotel projects stall

BTN News
Tuesday, 28 July 2015
More than 100 planned hotel projects in India - including some belonging to major chains - have stalled because the sector is suffering overcapacity.

Property consulting firm JLL India's md Mandeep Lamba said occupancies and average room rates both are under pressure, leading to reduced profitability for most hotel chains - while high borrowing costs of 13-14 per cent are adding to the sector's problems.

International hotel chains Starwood Hotels and Resorts, Hyatt Hotels, Marriott International and AccorHotels are among those affected.

JLL India data shows about 30 Hyatt Hotels projects are on hold, as are 18 Marriotts and 17 for AccorHotels. Starwood has five.

Hotel occupancies in India declined from about 75 per cent to about 60 per cent between 2011 and 2014, according to KPMG International.