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No Room at the Inn in India

Where: India

For a while now, there have been reports that the hotel scene in India is getting overheated. But are you ready to pony up $450 a night in New Delhi?

According to an AP article that ran over the weekend, demand for hotel rooms in India has gone from "heavy" to "sold out." This won't come as a shock to anyone who has traveled to underbuilt Bangalore in the past few years, but the problem is now extending to most large cities and tourist centers.

India "immediately needs another 100,000 rooms" -- more than double the current amount -- said Lalit Suri, the chairman and managing director of India's Bharat Hotels. He estimated that would require investment of up to $17.4 billion.

A total of 300 hotel projects have been approved by the government and are in varying stages of development.... Most are likely to be completed in the next three years and should increase capacity by about 75,000 rooms, he said.

Nearly half of the new projects are luxury hotels, and account for about $1.58 billion in investment....

So if you're heading to India expecting to find a bargain--which would normally be logical considering the average earnings here--think again. The average price of a 5-star hotel in India has climbed to $325 a night.

[Photo: Jochen in Singapore]

Related Stories:
· Travelers to India's cities scramble for hotel rooms [Sun-Sentinel]