For the very same reason, the top quality hotel portfolio in India was mostly manipulated towards luxury hotels. If a luxury 300-room hotel has 12,000 sq ft of lobby (or a lobby size of 40 sq feet per room), then a mid-market hotel would construct about 1,800 sq ft of lobby (6 sq feet per space), which would save over 10,000 sq feet of location, require much less land and bring down the building and construction cost. Sudhir Sinha, primary operating officer at the US-based G6 Hotels, says that even if the mid-market and budget hotels have actually emerged as a big category, there’s still no allotment of land by the federal government for these classifications of hotels.
Nearly two-third of the fresh additions in the hotel space stock over the next 5 years is expected to be in the budget and mid-market categories, says a current report by CARE Ratings. Among all categories of hotel rooms, the biggest increase would be in the mid-market segment (49.5 per cent) followed by upscale (21.9 per cent), budget plan (18.1 per cent) and high-end (10.5 per cent). For the exact same factor, the top quality hotel portfolio in India was largely skewed towards high-end hotels. If a high-end 300-room hotel has 12,000 sq feet of lobby (or a lobby size of 40 sq ft per room), then a mid-market hotel would develop about 1,800 sq feet of lobby (6 sq ft per room), which would save over 10,000 sq feet of area, need much less land and bring down the building cost. Sudhir Sinha, chief running officer at the US-based G6 Hotels, says that even if the mid-market and budget plan hotels have actually emerged as a big category, there’s still no allocation of land by the government for these classifications of hotels.
