May 20, 2005 - BANGALORE, India -- The prevailing accommodation crunch in the premium hotel category in Bangalore may soon be a thing of the past. About 3,500 luxury hotel rooms are due to be created over the next two to three years in the city, as some of the biggest global brands are preparing to set up properties here. When that happens, one can forget about staying in Chennai and travelling to Bangalore for work.

The city currently has 1,600-odd rooms in the five-star category, but these have proved to be totally insufficient. Real estate players have sensed a huge business opportunity in the sector and are building world class properties for international brands to come and adorn.

Big players like Shangri-La, Marriott, Hilton, and the Carlson Group (with the brand Country Inns & Suites) will make their presence felt soon.

Hilton will establish a 300-room luxury hotel on Ulsoor Road, Marriott is putting up a 250-room hotel in UB City, while Hong Kong-based Shangri-La will set up three hotels in Bangalore, all in the premium bracket. Radisson too is arriving with a 350-room hotel.

Bangalore hotels today enjoy some of the highest tariffs in the country. But two years down, it could be a different story. The customer could then be enjoying fivestar facilities at rates far more affordable. "We'll do an Air Deccan in hotels", says a developer who is planning a five-star property in Bangalore. "No one will believe they can get five-star facilities for the tariffs we set".

According to Huvida Marshall, general manager, The Oberoi, the location of the properties will be crucial to their success. "Also, I believe that by the time these hotels are built there will be more demand. Just look at the increasing number of flights out of Bangalore. This shows that business is continuing to grow, and hence more properties are likely to come up".

And the action is not just limited to the five-star segment. There are three-star and four-star properties coming up as well, with standards better than those available today. Says Rajni Ghatge, director, Infantry Court: "Once the international airport comes up, there will be a huge demand for hotels in that part of the city. Luxury hotels outside the five-star bracket will be the need of the hour then".

By Darlington Jose Hector and Sujit John

-----

To see more of The Times of India, or to subscribe to the newspaper, go to http://timesofindia.indiatimes.com

Copyright (c) 2005, The Times of India

Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected]. MAR, HLTGY, HG,