Luxury brands eye India, but not without some reservations

03/19/2013 | LiveMint.com/The Wall Street Journal (India)

As numerous luxury brands such as Four Seasons, Aloft and Le Meridien eye expansion in India, they could face both competition and roadblocks. Indian Hotels Co. and Oberoi Hotels operate popular luxury hotels in the country, and experts say short-term growth also could be a challenge. "At present, the premium segment has an oversupply. In an economy where demand is low and supply is high, any global chain entering India will find it difficult to settle because of their limited flexibility to lower prices as they need to protect their brand image," noted Pavethra Ponniah, a hospitality analyst at ICRA.

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