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HOTELS
Current view
q Indian hotel industry has huge growth potential given that India is one among
the top growing economies globally. However, we stand poorly in terms of hotel
infrastructure when compared to developed and developing countries.
q In order to improve our hotel infrastructure at a rapid pace, the industry is seeking
accreditation of infrastructure status under section 80-IA to the hotel industry.
Accordingly the industry expects various benefits that are available under
the said act for the development of hotel infrastructure.
q Hotel projects have long gestation periods as they require huge investments of
which the bulk is accounted for land and building. Currently hotel industry
comes under the real estate sector and is subject to rules that apply to the real
estate sector. Banks consider real estate lending as risky assets and since hotel
projects are classified under real estate, lending to hotel projects attract higher
interest rates. The industry is also looking to get some tax rationalization and
single window clearance for various licenses.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
HOTELS
Current view
q Indian hotel industry has huge growth potential given that India is one among
the top growing economies globally. However, we stand poorly in terms of hotel
infrastructure when compared to developed and developing countries.
q In order to improve our hotel infrastructure at a rapid pace, the industry is seeking
accreditation of infrastructure status under section 80-IA to the hotel industry.
Accordingly the industry expects various benefits that are available under
the said act for the development of hotel infrastructure.
q Hotel projects have long gestation periods as they require huge investments of
which the bulk is accounted for land and building. Currently hotel industry
comes under the real estate sector and is subject to rules that apply to the real
estate sector. Banks consider real estate lending as risky assets and since hotel
projects are classified under real estate, lending to hotel projects attract higher
interest rates. The industry is also looking to get some tax rationalization and
single window clearance for various licenses.
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