U.S. Hotels Build To Alleviate India Room Crunch

<I>New Delhi</I> - While an explosion of inbound travel and limited supply of hotel rooms are creating a big headache for multinational corporations in India, U.S. hotel suppliers should provide relief in the not-too-distant future.

Many of the new properties are opening near the airport, said Sam Vahdha, general manager of Taj's Lexington Hotel in New York. Depending on traffic, that puts travelers between 45 minutes and two hours from the central business district.

Radisson will open in Bombay later this year with 450 rooms in Bandra, located near the new stock and diamond exchanges. The hotel is the first five-star property to be built here in 15 years. Radisson also is moving to New Delhi with a 265-room airport property scheduled to open in November.

Hyatt, meanwhile, is expanding here for the first time in more than a decade. A 400-room Grand Hyatt is scheduled for New Delhi and a 200-room property for Madras. Both will open in late 1998. Plans also are in the works for a Bombay property, although no firm date has been set, according to Hyatt spokeswoman Sharon Barlow.

Hilton International is making its own move in India. Starting with a management contract for what previously was the Holiday Inn Crowne Plaza in New Delhi, Hilton plans openings in Bombay and nine other Indian cities within the next five years. While Holiday Inn is desperately seeking another New Delhi property, according to Holiday Inn Hotels India executive director Rakesh Mathur, it already has expanded rapidly in secondary cities such as Pune, Ahmedabad and Ootacamund.

Choice Hotels, like nearly every other international hotel group, is moving into India as rapidly as possible to help alleviate the crunch. But even Choice properties in secondary cities such as Bangalore, India's equivalent to Silicon Valley, are running well above 85 percent, due largely to a booming domestic market.

And while competitors are moving into the city, the land prices are pushing development out of the major business areas.