With India's economic boom generating more foreign and domestic travel in the country, room rates have shot up in New Delhi and Mumbai, where a night at a central five-star hotel can cost more than $500. The Ministry of Tourism predicts India's room shortfall will increase by more than 50% to about 150,000 rooms by 2010 because of the increasing demand.
Indian and international hotel chains are seizing the opportunity. Marriott International Inc. has 24 hotels in its pipeline to open by 2011. Hilton Hotels Corp. has agreed to put up 75 hotels over the next seven years in a partnership with Indian land developer DLF Ltd. Starwood Hotels & Resorts Worldwide Inc. plans 12 Sheraton and Westin-branded properties in the next three years.
