Luxury Hotel Chain Shangri-La Pulls Out of Mumbai

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Luxury hotel chain operator Shangri-La Asia has given back the keys to its first hotel in Mumbai. Phoenix Mills Ltd., the owner of the property, is now speaking with Starwood Hotels & Resorts Worldwide Inc. about taking over the hotel under its St. Regis brand.

The relationships between hotel owners and global hotel chains have been strained in recent years in India. The oversupply of new hotels drawn up during the booming 2006 and 2007 years along with a slow economy have produced dropping occupancy rates in India.

While some global hotel chains are pulling out of India, others are seeing the potential in snatching up unbranded hotels to expand in the country. InterContinental Hotels Group, Starwood and Hyatt Hotels Corp are setting their sights on the country.

India is currently the fourth largest market for Starwood Hotels. It is expected that by the end of next year, the country will move up to the hotel chain’s third largest market.

Details courtesy of Reuters, photo courtesy of Shangri-La Hotels and Resorts

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