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Hotel majors stall projects

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According to a study by consulting firm HVS, the hospitality companies had announced to add 90,000 rooms by April 2015. Realistically, industry experts say, only two-thirds of the figure will materialise by then. For instance, Accor Hotels initially planned to set up a network of 50 hotels in the country by the end of 2012. Currently, it operates only nine and expects to add 21 more hotels, taking the network to 30 hotels. This means it will fall short by 20 properties. Marriott’s Ritz Carlton is another project running late by two years. Announced in 2007, the hotel was scheduled to come up in 2010. The delay has also led to a 15-20 per cent cost escalation for every project. Hilton Worldwide, which currently operates five hotels in Delhi, Mumbai and Chennai, plans to triple its presence in the next two years by having 14 properties.

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