INDIAN HOSPITALITY SECTOR BOUNCES BACK IN 2005.

NEW DELHI, Jan 2 Asia Pulse - Lower airfares and an increased focus on infrastructure development kept the Indian hospitality industry busy in 2005, as room rates hardened and occupancies soared to new highs, thanks to increased foreign tourist arrivals and domestic travellers.

The resurgence of the industry prompted both big and small players to announce new investment, as profit books swelled to healthy levels.

International chains were not far behind, with brands like Carlson announcing expansion plans for India, while leading luxury hotel group Shangri-La Hotels and Resorts made a comeback.

However, passage of the 165-year-old Great Eastern Hotel, also famous as the 'Jewel of the East', into private hands was one of the highlights of the year.

The West Bengal government decided to transfer the management control to Lalit Suri-owned Bharat Hotels Ltd.

Handing over a cheque for Rs 520 million ($US11.5 million) to the state government, Suri said he would invest up to Rs 1.20 billion to develop the property as a five-star deluxe heritage hotel.

The resurgent mood in the industry was on full display when Shangri-La Hotels and Resorts, one of the leading luxury hotel groups in the Asia Pacific region, entered the market again in New Delhi.