As we step into the 70th years of Indian independence, it’s time to remember our great patriots who sacrificed their lives for the freedom of the nation.

A lot has changed since then. India has seen some profound changes overall.

Hospitality industry is one that has evolved to what we know it today. It all started when Shri Jamshedji Tata established what is known as India’s first ever hotel to be built by an Indian entrepreneur.

Indian Hotels after Independence

Following that, soon the government of India contributed to establishment of Hotel Ashok in New Delhi.

The impressive overall growth resulted in massive investment in the Hotel sector and new Indian and foreign Hotel Chains made their presence on Indian landscape.

The growth of Hotels in India is propelled by the increase in the tourism. The continued “Incredible India” campaign launched by Government of India has had a strong impact on the tourist arrivals in India.

Crisil research Annual Review 2013 highlighted the following interesting facts about the Indian Hotel Industry. The size of the Hotel Industry is USD 3.8 Billion, and is growing at average rate of 12%.

The current supply of hotel rooms is about 110,000 hotels rooms and current demand is about 150,000 hotels rooms.

However, the primary cause for the boom in the Hotel Industry is the growth in information technology and related services.

The rise of stock indices and new business opportunities are also something that captures the eyeballs of foreign institutional investors, funds, equity and venture capitalists.

Many of our hotels have been recognized at the world level with the prestigious awards for their unmatched services. The hotels in India are now competing with their world counterparts in providing the best services any guests can have.

It is clear from the discussion that the Indian Hotel Industry is growing at fast rate.

Hotels Growth in India Graph


While as some hotel chains have earned name and fame in Global markets many others are being accused of lacking the service quality which does not match their Hotel classification star category.

The best role the Government can play in such a situation is play a role of facilitator of growth only by encouraging foreign investment, restructuring the tax schemes to make Hoteliers confident of investing, reduce the luxury and service taxes so that prices of services offered by the hotels are lowered.

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