Hotel business to stay sluggish in 2015 despite 10% increase in demand of hotel rooms

Hoteliers in India are bracing up for a slightly better but tough year as they expect only a slight improvement in room demand from sub-60% occupancy levels across major cities in 2014. "Rates will improve this year, but growth will be subdued till October 2017. That is when the hospitality industry will be buoyant again." Vikramjit Oberoi, chief operating officer of the Oberoi Hotel group, said, "Today, a hotel company can only grow through acquisitions of businesses since the low demand for rooms isn’t supportive of an increase in room rates.

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