Hyderabad is likely to see a surge in hotel count riding on the back

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of its growing IT and allied sectors. The Andhra Pradesh capital’s hotel inventory is likely to increase by at least 50 per cent in three years from 8,104 keys at present to 12,314 keys with the addition of new hotels ranging from the mid-segment to luxury grade, according to a Cushman and Wakefield report.

Hotel brands like Trident, Oberoi, Sarovar, Royal Orchid, Park Hyatt, Holiday Inn, Lemon Tree, Doubletree by Hilton, Radisson Plaza, The Pride, Red Fox, Citymax and Citadines are likely to have a presence in Hyderabad soon.

The report by the real estate solutions firm, titled ‘Advantage Andhra Pradesh’, said the Hyderabad hospitality market would grow in terms of both the range of products and the variants available.

The Cushman and Wakefield report said the growth would take place mainly in the western and southern quadrants of the city catering to the information technology and allied sectors.

Aruni Ray, general manager of Lemon Tree, said, “The growth of IT and other industries in the city will drive the growth of the hospitality sector.”

The report also said that about four million sq ft of mall development would take place in the city by 2014. Most of these are coming up around Kukatpally, an area close to the IT corridor of Madhapur-Gachibowli, and some spreading towards Uppal, the eastern side of the city.

“Malls will be destinations for family shopping, entertainment and food. Increasing traffic congestion will force people to reduce their travel as much as possible,” said M Narsaiah, chairman and managing director of Shanta Sriram Constructions, which is building three malls around Secunderabad and a hotel at Gachibowli.

The report also said demand for office space across Mumbai, Chennai, Bangalore, NCR, Pune, Kolkata and Hyderabad is likely to be 160 million sq ft, with Hyderabad seeing a supply of 18 million sq ft office space by 2014.

By the end of 2010, Hyderabad had an estimated 32 million sq ft of office space and its absorption was driven by the IT-ITes sector with suburban locations accounting for a majority of the demand. During 2010, Hyderabad witnessed the highest annual absorption of approximately 5.2 million sq ft, signifying occupiers’ confidence in the real estate market post-recession, the report pointed out.

Further, the Cushman and Wakefield report estimated a potential for additional office space of 45 million sq ft spread across 11-13 projects.

However, it said there is visibility of only four million sq ft spread across 4-5 projects in the next two years, adding that the realty sector is set to experience exciting times ahead considering the immense growth in industry and services sector.