International luxury hospitality brands such as W and St. Regis from Starwood Hotels and Resorts Worldwide Inc. are ready to make a big splash in the country. Starwood operates the Le Méridien, Sheraton, Four Points by Sheraton and Aloft brands in India.

Fairmont Hotels and Resorts Inc., also Canada based, is looking beyond the 255-room super luxury property it set up in Jaipur last year. Fairmont plans to open 12 hotels such as the one in Jaipur in the next five to 10 years. Lebua, the top-end property of Thailand-based Lebua Hotels and Resorts, is also expanding operations in the country.

Four Seasons Hotels and Resorts, which operates 91 luxury properties around the world, is setting up a 5 million sq. ft complex that will house a 300-room hotel, residences and retail space in Noida on the outskirts of Delhi, all with the luxury tag.

There’s good reason why foreign brands are tapping the Indian luxury market. More Indians than ever are entering the ranks of the wealthy and developing a taste for luxury, said Dilip Puri, managing director India and regional vice-president, South Asia, Starwood Asia Pacific Hotels and Resorts.

Kempinski Hotels SA, a European luxury hospitality brand that has a property in Gurgaon in partnership with Leela Palaces, Hotels and Resorts, is now eyeing five luxury properties in India—one each in Udaipur, Mumbai, Hyderabad and a city in Kerala over the next few years as per a report in Mint by Moulishree Srivastava. It recently opened a hotel in east Delhi.

However, industry experts say that these companies may face roadblocks on account of slower short-term growth as well as competition from luxury chains based in the country such as the Indian Hotels Co. Ltd (IHC), which operates the Taj group of hotels, and Oberoi Hotels Pvt. Ltd, which is known for its flagship super luxury properties such as the Rajvilas in Jaipur, the Amarvilas in Agra and the Udaivilas in Udaipur.

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