The hotel chain Premier Inn is expanding in India to meet the demand for budget hotels amid a growing middle class and the rise of low-cost airlines in the country.
There are three existing properties in India under the Premier Inn brand, which is part of the hospitality group Whitbread and is the largest budget hotel chain in the UK. The India division is planning to open hotels in Goa and Chennai in the coming year, according to VV Giri, the regional director of operations for Premier Inn South Asia.
“Going forward, we strive to close seven to eight deals every year, which should result in four to five fully operational properties every year,” Mr Giri said, adding that it had already invested US$350 million in the Indian market.
“So far we have narrowed down on about 30 potential markets where we wish to set up our properties,” he added. “The relative underdevelopment of the budget hotel sector in India coupled with the pace of economic growth has created an opportunity for Premier Inn India to create a pan-Indian business, which has ambitious plans for setting up hotels. Our expansion plans are quite realistic considering the development process in India is quite difficult and time-consuming. There are various kinds of challenges surrounding acquisitions, licenses, real estate, approvals, supply chain and human resources.”
07/06/14 Rebecca Bundhun/The National
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There are three existing properties in India under the Premier Inn brand, which is part of the hospitality group Whitbread and is the largest budget hotel chain in the UK. The India division is planning to open hotels in Goa and Chennai in the coming year, according to VV Giri, the regional director of operations for Premier Inn South Asia.
“Going forward, we strive to close seven to eight deals every year, which should result in four to five fully operational properties every year,” Mr Giri said, adding that it had already invested US$350 million in the Indian market.
“So far we have narrowed down on about 30 potential markets where we wish to set up our properties,” he added. “The relative underdevelopment of the budget hotel sector in India coupled with the pace of economic growth has created an opportunity for Premier Inn India to create a pan-Indian business, which has ambitious plans for setting up hotels. Our expansion plans are quite realistic considering the development process in India is quite difficult and time-consuming. There are various kinds of challenges surrounding acquisitions, licenses, real estate, approvals, supply chain and human resources.”
07/06/14 Rebecca Bundhun/The National
