Andhra Pradesh has the lowest number of 5-star hotels in South India. Which state has the highest?

Experts feel Andhra and Telangana have the potential to welcome more branded hotels given their commerce, tourism and global appeal

Oyo Hotels Representative image | Facebook/OYO

A Rajya Sabha reply has revealed that Andhra Pradesh and Telangana have fewer 5-star and 4-star hotels compared to their southern counterparts.

Andhra Pradesh has 22 5-star hotels, the lowest among all other south Indian states. The neighbouring Telangana has a slightly higher number with 23 hotels. Kerala has the highest number of 5-star hotels in the entire country— 94. Karnataka has 66 and Tamil Nadu has 43, as per the official figures of the Union Tourism Ministry.

The details of the number of 3-star, 4-star and 5-star hotels present in various Indian states were shared by Union Tourism Minister Gajendra Singh Shekawat in response to an unstarred question in Rajya Sabha. Other states with a higher number of 5-star hotels compared to the Telugu states are Delhi, Goa, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and West Bengal.

When it comes to 4-star hotels, Telangana has 11, the lowest in south India, Andhra Pradesh has 14, Tamil Nadu 19, and Karnataka 23. Kerala has 420 4-star hotels, again the highest in India. The north-eastern states, Arunachal Pradesh, Sikkim, Mizoram and Tripura do not have a single 4-star hotel in their respective states. 

In the category of 3-star hotels, AP and Telangana fare better as the former has 36 hotels and the latter, 9. Tamil Nadu has the lowest number of 3-star hotels with seven properties. Karnataka has 11 and Kerala has 607 hotels. The Ministry of Tourism classified the hotels after 2019 based on certain guidelines. 

"The classification exercise is undertaken by a committee, namely the HRACC (Hotel & Restaurant Approval & Classification Committee), having members from the Ministry, industry associations, hotel management institutes and State Government/UT Administration," as per the reply.  

Though the existing figures are low, experts feel that the two states have enough potential to welcome more branded hotels given their commerce, tourism and global appeal. Andhra Pradesh has one of the longest coastlines in the country and a thriving aqua industry while Telangana boasts of Hyderabad— an IT and pharma hub with a vibrant cosmopolitan culture. "There is a shortage of branded star hotel rooms not just in AP and Telangana but also in India. The economy is growing and there is higher cosmetic and international travel. During peak season, there is a paucity of rooms and that why the price increases. Due to the demand, more investments are coming into this sector and there will be a lot more inventory of hotel rooms in AP and Telangana,” said Pankaj Sampat, president of the Hotels and Restaurants Association of Telangana State. 

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