Expansion of India's hospitality sector has been expected, finally international and domestic chains have announced their intentions, collectively they see growth opportunities at both ends of the market.

Luxury boost

The luxury Peninsula chain plan to open their first hotel in India. With rising Indian consumer wealth, they take a long-term view.

Hyatt Hotels also has its eye on India's increased wealth, choosing India as the first location outside of the US to grow its up-market Hyatt Place brand.

Domestic luxury

Anticipating 35-40% revenue growth for the Oberoi brand and 15-20% for the Trident brand this financial year, East India Hotels plan for 25-30 new hotels by 2015. Newly redeveloped Mumbai Oberoi, will be charging as much as US$ 6,750 a night.

Domestic rival and Tata-owned Taj Hotels are opening 15 properties. The hotels will be a mix of the new, premium Vivanta by Taj brand and the upscale Gateway brand.

ITC - while planning their own expansion - have agreed a deal with Starwood Hotels & Resorts Worldwide, the arrangement will see them operate Starwood's Luxury Collection brand.

Multi-brand expansion

President of Starwood's Asia Pacific, Miguel Ko revealed plans to double their presence to 38 hotels and introduce other brands from the Starwood's portfolio. Hyatt also plan to open 25 new Hyatt Regency and Grand Hyatt hotels.

Marriott International expect to be managing 40 hotels by 2013, up from the 11 it currently operates. Commenting, Ed Fuller, president and managing director of international lodgings said:

"We are thrilled by the robust expansion of our hotel portfolio in India. India is witnessing unprecedented growth and expansion of its travel and tourism industry and we are delighted to participate in this expansion in a meaningful way."

Targeting domestic travelers

Intercontinental Hotels Group plan 41 hotels, taking occupancy levels up to 9000 rooms, up from current 2000. Crucially, 29 will be the more affordable Holiday Inn brand. Their strategy is to attract business from mid-market domestic travelers, choosing to focus on the 500 million domestic trips in India, rather than the five million international visits.