Hit by fund and permit hassles, hotel majors stall projects

New Delhi : September 05, 2011, 0:47 IST:Many leading hospitality companies looking at expansion are either deferring launches or stalling projects on the back of various challenges including fund crunch and roadblocks in getting permits.

According to a study by consulting firm HVS, the hospitality companies had announced to add 90,000 rooms by April 2015. Realistically, industry experts say, only two-thirds of the figure will materialise by then. Of the rest, some will get delayed and others shelved.

For instance, Accor Hotels initially planned to set up a network of 50 hotels in the country by the end of 2012. Currently, it operates nine, the latest being ibis at Mumbai Airport, which opened last month. The others include 3 Novotel, 3 Mercure, 2 ibis. Sofitel, Pullman and Formule1 brands are expected to debut during this year.