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Due to the massive gap between demand and supply, hotels have increased their average room rates by almost 18-22% annually in recent years.
To help meet this shortfall, the tourism ministry has proposed to create a land bank by acquiring land for building hotels in public-private partnership on a built, operate and transfer (BOT) basis. The urban development ministry has already reportedly agreed to allot three sites in Delhi to the tourism ministry.
Indian Railways has also decided to utilise its land inventory for hotels. In early 2007, the Indian Railways Catering and Tourism Corporation (ICRTC) said that it is planning to set up 100 budget hotels across the country within the next two years...
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