Due to high cost of funds and project delays, hotel chains of both global and Indian are increasingly opting for management contracts rather than to invest in properties in the country. While global chains, such as the UK's InterContinental, Accor of France and Dubai-based Rotana Hotels, will open most of their new properties under management contracts, Indian chains such as The Leela Group and Lemon Tree Hotels, too, are now adopting an asset light-asset right model.
Roots Corporation on July 29 stated that it will open eight new properties under 'Ginger' budget hotel chain across India, adding 470 rooms, by the end of next financial year. The firm, that currently has 2,700 rooms spread across 28 properties, is looking at smaller cities and towns like Bhubaneswar, Vapi, Jaipur and Vadodara, besides metros for expansion. Roots Corporation is a subsidiary of Tata group firm Indian Hotels.
Marriott International Inc is planning for 100 operational hotels in India by 2018, reports indicate. The hotel chain currently has 86 hotels and 15 brands spanning 35 cities. This year, the firm has already opened four hotels and is in the process of opening six more hotels in the year. Reports also reveal that the firm is eyeing tertiary cities such as Indore, Amritsar, Coimbatore, Jaipur and others for more properties.