The chief executive for the hotel operator of Starwood Hotels & Resorts claims that there is a demand that is yet to be tapped in the country of India for hotels and resorts. Some swift returns are in store for those investing in the properties of this country. That is why Starwood Hotels & Resorts is planning to build an additional fifteen hotels in the rapidly growing country of India by the year 2012.
Less than a month ago, Starwood Hotels & Resorts opened their twenty-fifth location in India. The Westin Pune Koregan Park holds steady in the category of high-class hotels. Typically, it is three or four years before a return is seen on a hotel investment. However, the chief executive for Starwood Hotels & Resorts, Frits van Paasschen, anticipates the hotels in India will fare considerable better. In fact, he expects to see a return in only two years.
India is the second largest country in the world and home to at least twelve billion people. Hotel chains have thought about investing in India for many years. However, the people of India remain underserved when it comes to hotels and resorts.
In North America, Starwood Hotels & Resorts owns more than five hundred hotels. The largest costs for building hotels and results are the money that goes to the developers. The greatest competition for companies that are non-Indian are the local companies, such as Welcomgroup, Taj and Oberoi, according to Patrick Scholes, an analyst for FBR Capital Markets. In order for the companies to grow with any amount of success, they must expand throughout the four major cities in India.
Included in the fifteen new hotels that Starwood Hotels & Resorts has planned are six Aloft-branded hotels, according to Frits van Paasschen. He also believes because of market size, Starwood Hotels & Resorts is most likely to reach and exceed their goal within the next two or three years. The fifteen additional hotels that the company has planned are set to be built in Hyderabad, Mumbai and Chennai, as well as the capital of India, New Delhi.