Depreciating rupee, increasing foreign tourist arrivals and asset-light model foresee well for Indian Hotels Company Ltd in the coming quarters. 

Indian Hotels is one of the largest hotels players in the luxury segment with 112 hotels across Indian and overseas markets which form an inventory of 13,629 rooms. 

In the January-June 2012, the number of foreign tourists arrived in India grew by 7.4% in comparison with past year's January-June period. The depreciating rupee is predicted to work for Indian Hotels since it derives 60% of its total demand from foreign tourists as per a report in ET. 

In the past four years, the company had consciously not increased its tariff rates. With the dollar appreciation, for foreign tourists, the tariff rates have become quite economical.

The company is planning to add 2,040 rooms in FY 2013, 37% of which would be management contracts. The company would lend its name and expertise instead of directly buying land, which entails huge costs.

Also, a large portion of this expansion would be in the budget segment, which has a huge preference among leisure Indian travellers.

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