From Nepal to Sri Lanka, Indian hoteliers branch out to neighbouring countries

Ashish Kulshrestha | The Clear Picture

Large and mid-sized Indian hotels are branching out to neighbouring countries including Nepal, Bangladesh and Sri Lanka to capitalise on the growing outbound travel from India in the past four to five years. This is also intended to leverage the cost arbitrage offered by the decline in demand due to the pandemic in the SAARC countries.

Hoteliers such as Lemon Tree, Aloft Hotels, Sarovar Hotels and Resorts and InterContinental Hotels Group (IHG) are among an increasing number of hotel chains opening properties in neighbouring countries. While Lemon Tree, Sarovar and Aloft are opening one hotel each in Nepal, IHG is opening two hotels in Bangladesh. Oyo Hotels first entered Sri Lanka in December 2019 and has been expanding actively there. Interestingly, Nepal is becoming a popular spot for Indian hoteliers which sees its highest inflow of tourists from India.

Rattan Keswani, Deputy MD, Lemon Tree Hotels and Director – Carnation Hotels, told Hotelier India, “We are delighted to expand our upcoming portfolio in Nepal with Nepal International Hospitality. The addition of this hotel will help expand our reach in the country and add to our repertoire of hotels in the region. The planned casino, which will be built adjacent to the hotel, will be an added USP and provide an exclusive offering to our guests.” The new property is expected to be operational by January 2023, and will be Lemon Tree’s third hotel in Nepal, including one each in Kathmandu and Nagarkot.

According to Care Ratings Nepal, Indians form the biggest proportion of tourists travelling to Nepal and have grown from over 1.2 lakh in 2010 to 1.94 lakh in 2018. A total of 1.17 million tourists arrived in Nepal via air and land routes during the calendar year 2019, of which around 32% came from India and China only.

The report adds that Nepal tourism can bring a significant number of tourists from next door neighbors with the right approaches. Because of the increasing number of tourists from India and China, there is no so-called off season in Nepal now. Even in the monsoon season, Indian and Chinese tourists travel to Nepal to enjoy varieties of activities of their likings.

This is attracting Indian hoteliers to have the first mover advantage in Nepal market considering 80% of the population is engaged into agriculture and the tourism industry is just beginning to grow.

Earlier in March 2021, Sarovar Hotels and Resorts announced plans of opening their first hotel in Birgunj, Nepal. To be completed by 2022, it will have 50 well- appointed contemporary rooms and suites and offer elegant ambience and amenities to the guests.

Commenting on the development to Hospitality Biz, Anil Madhok, Executive Chairman, Sarovar Hotels and Resorts said “We are absolutely ecstatic on our latest addition. Nepal is known for its mountain peaks, breathtaking scenic views, outdoor sports and rich culture. This is our first hotel in the country and we look forward to extend our signature hospitality in this region.