As an important service sector of the economy which contributes 8 to 9% to the country’s GDP, the tourism and hospitality sector is needed to be protected from the vagaries of the market aberrations, feels Chakraborty. In order to protect the assets and enhance their value, a dedicated Asset Management platform is the need of the hour. Chakraborty recommends a Hospitality REIT or an InvIT platform for Hospitality assets so that the investments in the sector absorbs market shocks like the Covid-19 pandemic.
Such platforms can deliver the much needed stability to the sector when faced with adversities. “Globally, there are a couple of such funds. India is a big opportunity for such funds,” he said. If such platforms are set up in India, the TFCI, as a specialised financing institution for the tourism and hospitality sector in the country, with over three decades of experience, will be keen to work with it as an Asset Manager or an Asset Management Advisor, Chakraborty stated.
“Yes, we have certain ticket size constraints. But we can work as a facilitator for such a platform. We have worked with over 500 clients in the last 30 years and supported over 700 projects. Out of the nearly 2 lakh hotel inventory in the country in the organised sector, almost 52,000 rooms are set up with TFCI funding support, that is 25% of the total inventory in this country,” he said explaining.. Read More