The raising of $475m by Indian Hotels, the owner of the Taj brand and budget Ginger concept, is set to deliver further rapid growth in the hotel stock of what will soon be the world’s most populous nation.
While China has garnered the most interest among hoteliers seeking to push into emerging markets, the potential in India is nearly as great.
Indian Hotels is to use the cash it is raising to fund growth: currently, seven Ginger hotels are under construction and three upscale properties. Acquisitions were also on the agenda, said the company.
While there is rapid growth in room supply in the country, the current shortage of hotel rooms is set to continue at least into 2009, according to estimates.
IHCL has plans to open 30 Ginger hotels over the next two to three years and is pushing overseas with its Taj brand. Its most recent acquisition was the Campton Place in San Francisco which was bought in April for $58m.
The other main domestic player in India is East India Hotels, the owner of the Oberoi brand. It also has a co-branding deal with Hilton for its Trident hotels. It has a total of 20 properties with around 3,000 rooms.