However, global brands signed up for more rooms – 8,868 compared with 7,152 for domestic chains in 2017. Newly built hotels comprised 53% of the total deals, conversions for 36% and hotels under construction accounted for 11%.Management agreements retained their lead, accounting for 80% of the total signed in 2017, little changed from a year earlier. Leases accounted for only 4% of the agreements as hotel brands continued to reduce risk related to real estate exposure. Franchising comprised 15% of the total arrangements.The share of hotel signings in tier 3 cities reduced in 2017 compared to those in 2016, which accounted for nearly half of all signings in the year. As a result, interest in development of new hotels in tier 2 markets went up as per the report.

Source: Economic Times April 20, 2018 02:55 UTC