Hoteliers flock to Ayodhya in anticipation of massive tourist influx

As the country is gearing up for a grand opening of the much-anticipated Ram Temple at Uttar Pradesh’s Ayodhya on 22 January, the hoteliers are not resting on their laurels either. In anticipation of a massive influx of tourists and pilgrims for years to come, India’s leading hotel chain operators have lined up new properties in the holy town.

The Indian Hotels Company Ltd. (IHCL) - one the country’s largest hotel chain operator that owns prestigious brands like Taj Hotels and Vivanta - is already coming up with two properties in Ayodhya. According to Suma Venkatesh, Executive Vice President - Real Estate & Development at IHCL, considering the fact that Ayodhya, as the revered birthplace of Lord Ram, attracts a significant pilgrimage footfall year-round, the company has taken the leap early.

“IHCL has underscored its commitment by signing management contracts for two new properties in Ayodhya - a 100-room Vivanta hotel and a 120-room Ginger hotel, both expected to be operational in 36 months. Strategically located near the upcoming Ayodhya International Airport, this five-acre complex will cater to both business and leisure travellers,” she tells Business Today.

Kolkata-based diversified conglomerate ITC Ltd., which is also a leading player in the luxury and mid-segment hotels business, is also considering its options in the area. According to Anil Chadha, Divisional Chief Executive, ITC Hotels, it is in discussions with developers in this market to offer branding and management solutions for their assets under development.

“Ayodhya is a great destination for cultural and spiritual tourism. It is encouraging to see rapid growth in overall infrastructure as a catalyst for the expected tourism surge. Any market with such large scale expected movement of travellers, would need quality accommodation across segments (luxury to economy). We have significant experience, pan India in the spiritual tourism space. Welcomhotel Bhubaneswar, Welcomhotel Amritsar, Fortune Park Haridwar, Fortune Madurai  and  Fortune Select Tirupati are some of our properties serving this segment of travellers”, he says.

As per estimates by JLL India, apart from these two - at least 2-3 other major hotel chain operators are in advanced stage of announcing their properties in Ayodhya. Jaideep Dang, Head of Hotels & Hospitality, India, JLL tells BT that together these four-five operators of 4 & 5 star hotel properties are going to add 1,100 rooms in the city. “In addition, real estate players are also purchasing land parcels in the area, which has resulted in a three-fold rise in land prices in Ayodhya,” he says.

Among others - Marriott International and Sarovar Hotels & Resorts have already signed deals. Sarovar Hotels & Resorts is planning to come up with a 80-room properties under the brand Park Inn by Radisson Hotels.

According to Venkatesh from IHCL, the buoyancy in India’s travel and tourism sector, marked by robust growth in occupancies and average room rates, is particularly beneficial for hotels in locations with religious or spiritual significance. “IHCL acknowledges the importance of spiritual tourism, with existing hotels in significant destinations such as Varanasi, Amritsar, Nashik, Ajmer, Katra, Rishikesh, Haridwar, and Tirupati. Recent expansions include a hotel in Vrindavan, integral to the Krishna pilgrimage circuit, and one in Makkah, near the Great Mosque,” she says.

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