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Global luxury hotel brands bullish on India

Priya Singh | 2024-03-19

Firms cite increased demand, long-term potential, but some experts warn of competition, roadblocks
Canada-based Fairmont Hotels and Resorts’s 255-room super luxury property in Jaipur. The company plans to open 12 such hotels in the next 5-10 years.
(Canada-based Fairmont Hotels and Resorts’s 255-room super luxury property in Jaipur. The company plans to open 12 such hotels in the next 5-10 years.)
New Delhi: Four Seasons Hotels and Resorts, which operates 91 luxury properties around the world, is setting up a 5 million sq. ft complex that will house a 300-room hotel, residences and retail space in Noida on the outskirts of Delhi, all with the luxury tag.
This will be one of the largest mixed-land use developments by Four Seasons and one of 23 such projects around the world modelled after similar properties in San Francisco, Moscow and Toronto. The project is in collaboration with the 3C Company, a real estate developer in the national capital region (NCR), which encompasses Delhi and its neighbourhood. The Canada-based hotelier currently operates one luxury property in India, in Mumbai.
It’s not the only brand eyeing India. International luxury hospitality brands such as W and St. Regis from Starwood Hotels and Resorts Worldwide Inc. are ready to make a big splash in the country. Starwood operates the Le Méridien, Sheraton, Four Points by Sheraton and Aloft brands in India.
also Canada based, is looking beyond the 255-room super luxury property it set up in Jaipur last year. Lebua, the top-end property of Thailand-based Lebua Hotels and Resorts, is also expanding operations in the country.

There’s good reason why foreign brands are tapping the Indian luxury market. More Indians than ever are entering the ranks of the wealthy and developing a taste for luxury, said Dilip Puri, managing director India and regional vice-president, South Asia, Starwood Asia Pacific Hotels and Resorts.

Globally, Starwood has doubled its luxury room count to meet growing demand for luxury travel in the last five years, the person said.

“We have over 150 luxury hotels under our St. Regis, Luxury Collection and W brands, which is the largest luxury footprint in the world—nearly as big as Four Seasons and Ritz-Carlton combined. Over 90% of our luxury pipeline is in emerging markets, reflecting new demand for luxury in new places. With a rising middle class, growing disposable income, an affinity for luxury brands and huge pent up demand for foreign travel, India is emblematic of the growth we are seeing in regions around the world and key to our global growth plans,"
India’s luxury hospitality sector is growing and interestingly at a rapid pace...fuelled by hearty inflow of overseas tourists as well as increased tourist movement within the country,
Fairmont is optimistic about the long-term growth story of India and it was a high priority for international hospitality chains along with other developing countries in a stage of economic revival.

Starwood has one St. Regis and four W hotels under development.

“We already have 10 Luxury Collection hotels under a franchise arrangement with ITC and have recently signed W hotels in the National Capital Region, Goa and Gurgaon," Puri said. “We also signed a St. Regis in Noida and in Delhi NCR. With the debut of W Hotels and St. Regis, eight of our nine distinct and compelling brands will be present in India. India is Starwood’s fourth largest market and will soon become its third largest market after US and China
director at the 3C Company, said Four Seasons was a completely “green" project. “It will be the new benchmark for luxury in the Indian hospitality market and create healthy competition for major Indian hotel chains," Bharadwaj said.

The company did not disclose the investment figure, but the project cost is estimated to be in excess of ₹ 2,000 crore.

Fairmont plans to open 12 hotels such as the one in Jaipur in the next five to 10 years.

“We have already progressed in terms of finalizing a resort in Goa and a property in Mumbai. Both should start construction in the next few months," said Lall. “In India, we aim to be in key cities such as Delhi, Mumbai, Bangalore as well as in resort locations like Goa."