Hospitality companies are targeting the so-called super luxury segment in India to tap the country’s growing number of high net worth individuals and companies that are willing to pay for premium rooms after the mid-market expansion drive of the last two-three years. A recent report on the hospitality sector by credit rating company ICRA Limited said there has been a spurt of activity in the super luxury segment, apart from the rise in supply of mid-market hotels.
“While over 50 per cent of the incremental supply (of about 60,000 rooms) is coming under mid-market brands such as Aloft,
Holiday Inn, Quality Inn, Ramada, among others, another niche segment which is emerging is the super luxury property,” said the report. “St. Regis from Starwood, an uber-luxury product, is set to be launched in Noida (in the National Capital Region) by 2015. Other hoteliers in the pipeline include Mandarin Oriental, Lebua, MGM and Jumeirah,” stated the report. Analysts said hospitality companies are now focusing on India’s high net-worth individuals (HNIs), and HNIs on their way to overseas destinations, besides inbound travellers. “Over the last three to four years, we have seen movement in the luxury space from several global companies,” said Pavethra Ponniah, a hospitality analyst at ICRA. “There is a target market in India for luxury properties both for local HNIs as well as higher-end tourists and business travellers to India. Also, the relatively high land cost tends to make luxury properties more viable,” added Ponniah.
Click here to see the original article>Holiday Inn, Quality Inn, Ramada, among others, another niche segment which is emerging is the super luxury property,” said the report. “St. Regis from Starwood, an uber-luxury product, is set to be launched in Noida (in the National Capital Region) by 2015. Other hoteliers in the pipeline include Mandarin Oriental, Lebua, MGM and Jumeirah,” stated the report. Analysts said hospitality companies are now focusing on India’s high net-worth individuals (HNIs), and HNIs on their way to overseas destinations, besides inbound travellers. “Over the last three to four years, we have seen movement in the luxury space from several global companies,” said Pavethra Ponniah, a hospitality analyst at ICRA. “There is a target market in India for luxury properties both for local HNIs as well as higher-end tourists and business travellers to India. Also, the relatively high land cost tends to make luxury properties more viable,” added Ponniah.