Tax sops prompt hotel majors to set shop in NCR

Hospitality Industry in focus.

Taking advantage of the tax holiday granted to hotels in the National Capital Region (NCR) in Budget 2007-08, three hotel groups - The Carlson Hotels Asia Pacific, The Marriott International and the InterContinental Hotels Group (IHG) are planning to build hotels in the NCR.

Carlson Hotels has signed management and franchisee contracts for three of its brands"" Radisson Hotels and Resorts, Country Inns and Suites and Park Plaza. Radisson Hotels and Resorts would be of 300 room capacity. Country Inns and Suites will be over 200 rooms and Park Plaza will be over a 100-room property.

K B Kachru, Senior Vice President, Carlson Hotels Asia Pacific, said, "We will be developing these hotels and are looking at other opportunities too for our economy hotels." According to sources, other hospitality players which are building up hotels there are InterContinental Hotel Group and Marriott International.

"InterContinental is building Crowne Plaza "" their upscale hotel brand and Marriott will be building, Marriott Hotel," said a source close to the development.

However Paul Logan, Vice President, Development South Asia, IHG said, "We have been approached by few developers to manage the hotels they plan. We would be talking to them for hotels in the mid and upscale segment to take advantage of the tax holiday granted." In view of the extensive shortage of rooms for tourists whose number is growing by the day, a tax holiday was proposed for the two, three and four-star category hotels only in the NCR in view of Commonwealth Games 2010.

Against an estimated requirement of 150,000 additional rooms all over the country, a little over 53,000 can be made by 2011 given the proposed investments, according to a recent study by the Federation of Indian Chambers of Commerce and Industry.