Page 43 - IACC Newsletter March-April 2014 Issue 03

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"Finding the right partner is a big challenge," said Sahgal. Also, availability of good quality supplies and connectivity are
major issues, she said, adding finding skilledmanpower is yet another challenge. "Career-oriented professionals might not
want to work in a tertiarymarket property." But others say the risk for global companies using the management contract
model, where they do not invest in the property but sign a contract to manage it, is relatively low.
"Management companies don't have anything to lose. It is the private entrepreneurwho bears the risk of investing in the
property and they want these international brand names to go with them so that they can raise loans easily," said
Narendra Verma, principal consultant, Hospitality Consultants India Pvt. Ltd.
Verma said these places will grow, but it will not happen quickly; the hotel companies know this, but unfortun ately the
property owners might panic as they look for a quick turnaround, he added.
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