New Delhi, India -- (SBWIRE) --06/15/2011 -- The growing need of mid-range customers is wooing the major hospitality sectors in India. Moreover, the hotels firms are finding the evolving market more conducive for mid-segment brands than the luxury ones.

Ashish Jakhanwalal, managing director and chief executive officer at Samhi Hotels Pvt. Ltd said, “India has a huge market for budget and mid-market hotels. We are comfortable with investing in mid-market hotels in India”. “We are raising $100 million (Rs.440.6 crore today) for investing in hotel properties and this will be largely in mid-market hotels.” The hoteliers in India are also excited with the prospects of mid-market and budget hotels.

the Taj Hotel Hyderabad chain, is looking forward to launch a mid-scale hotel brand, however, it represents the luxury segment. Raymond Bickson, managing director and chief executive officer of Indian Hotels, said, “We do not have a mid-scale brand right now, but we would be looking at launching in the next few years”. They are to launch two more brands Gateway Hotels for upscale and Ginger Hotels for budget segment. The Hotel Leelaventure Ltd. is also planning to launch its mid-scale property by the end of financial year.

Likewise the Indian hoteliers some international hotel chains are also planning to join the trend. InterContinental Hotel Group has collaborated with Duet India Hotels Group, to develop and manage its budget hotel Holiday Inn Express in the Indian market.

Hotel Marriott International Inc. has also signed an agreement with Samhi Hotels, New-Delhi based company, to launch a mid-market brand Fairfield by Marriott. Simon F. Cooper, president and managing director (Asia-Pacific) at Marriot said, “They are looking for clean and crispy hotels; not always looking for luxury hotels. So, you could see Marriot building more Fairfield hotels than other brands.”

Meanwhile, the firms owing Budget Hotels in Hyderabadare building more. Hoteliers believe that India offers the greatest opportunities for unit growth in the mid-market and two-to-four star properties. Moreover, the capital required for the development is much limited than used for Luxury Hotels in India, allowing more investors and developers to participate in the business. Both, domestic and global hotel brands are hoping to add 60,000 rooms in the next five years.