While cities such as Pune and Ahmedabad previously received a lot of negative press for being overbuilt and were pronounced dead, they actually saw a CAGR demand increase of 37.5% and 30.1%, respectively, which highlights how vibrant their demand base really is.
Even larger markets with a much bigger existing base have seen strong double-digit growth in demand over the last five years.
The Government of India has allowed 100 per cent FDI under automatic route in the hotel and tourism sector, according to the consolidated FDI Policy, released by DIPP. The domestic hospitality sector expects 52,000 new hotel rooms to be added in five years (2013-17), according to a survey by real estate consultancy, Cushman & Wakefield. This will lead to a rise of over 65 per cent in total hotel inventory in India.