Hospitality sector sees surge in investments in Tamil Nadu’s industrial hubs

According to TOI, Industrial hubs such as Krishnagiri, Hosur, Perundurai, Coimbatore, and Tuticorin, besides Oragadam-Sriperumbudur near Chennai, Tamil Nadu are witnessing a surge in investments by hotel groups.

In January, Fortune Park Hotels Ltd, a wholly-owned subsidiary of ITC Ltd, inaugurated a 107-room hotel in Krishnagiri. “Hosur, by virtue of its location and strong industry base, holds immense business potential and strategic advantages for us,” says Samir M C, managing director Fortune Hotels.

GRT Hotels and Resorts, with 17 properties across the state, is looking to expand in Tuticorin and set up new facilities in Hosur, Oragadam, and Sriperumbudur. Its deputy managing director T Nataraajan says a slew of projects in the automobile, furniture, and space sectors, besides the development at Tuticorin’s VOC Port, offer tremendous potential to the hospitality sector. “We are looking at adding 100 rooms to our facility at Tuticorin. The scenario all over the state is similar because the existing hospitality infrastructure cannot meet demand from business travelers,” he adds.

According to the national integrated database of the hospitality industry (NIDHI) under the Union tourism ministry, there are 8,667 rooms available in 263 one to five-star hotels, heritage hotels, and bed and breakfast homestays categorized as gold and silver. This apart, there are nearly 1.6 lakh unclassified rooms in 2,329 units. Unclassified accommodation includes lodges, hotels that are not categorized, tented accommodation, houseboats, farm stays, apartment hotels, and tourist homes.

Sources in the hospitality sector say there are about 4,000 rooms in the three to five-star category in the state. The occupancy rate in star hotels in and around Chennai during the peak business period from Tuesday to Thursday has now soared to 90% from an average of 65% in 2019.

Bengaluru-headquartered real estate developer Brigade Group in February signed a 45-year lease to build a 250-room resort on East Coast Road (ECR) close to Chennai and Mamallapuram. “The industrial boom in Tamil Nadu is influencing our expansion plans. As the state experiences economic growth and increased industrial activities, demand is growing for luxury accommodation and conference facilities,” says Nirupa Shankar, joint managing director, Brigade Group.

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