Check-In to Prosperity: India’s Hospitality Sector Books a Rs. 10,000 Crore Expansion

The hospitality industry in India is seeing a record investment flow, with over Rs. 10,000 crore flowing in for new development, acquisitions, and expansion. The wave of money is restructuring the sector, forcing consolidation and driving aggressive development plans.

Major Investment Trends

Hotel majors and top realty players are going the whole hog to expand their portfolios, making big bets on India's growing travel and tourism business.

Prestige Estates Projects has partnered Marriott International to build six new hotels with an investment of Rs. 4,250 crore.

D B Realty has reorganized its hospitality business and created Advent International Ltd., which will manage assets of Rs. 2,300 crore.

Mergers and Acquisitions Reconfiguring the Industry

Established players and new players are vying for strategic mergers in an attempt to create their market presence.

Northeastern chain Hotel Polo Towers is also preparing to make an IPO, and Pride Hotels have initiated listing plans.

India hospitality industry giant IHCL has expanded its portfolio of 350 hotels via acquisitions and signings.

Market Drivers and Future Outlook

The pandemic-recovery bounce has boosted domestic tourism, and high-end hotel demand has gained momentum.

India's hospitality segment has long-term appeal for investors, with Tier II and III cities being profitable markets.

Industry participants anticipate more consolidation, with additional IPOs and strategic partnerships in the pipeline.

Sources: Mint Hyderabad, Urban Acres, Hospitality Biz India, Economic Times, Live Mint, Times Now, Rediff Money, MSN

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