Why India’s hotel demand will outpace supply, but Sarovar won’t rush to sign everything

The company, majority-owned by Europe’s Louvre Hotels Group, is increasingly prioritizing tier II and tier III cities where infrastructure-led growth is outpacing the entry of branded players. “Growth for the industry overall is going to be much bigger in the smaller cities,” Ajay K. Bakaya, chairman of Sarovar Hotels and director at Louvre Hotels India, told Mint. However, high capital costs and a shortage of hospitality talent are complicating the execution of new projects in these emerging hubs, he added.