If this week’s announcements from global hospitality players are an indication, everyone seems to be racing to stake their claim in India. The reason? A mix of sustained domestic demand, an explosion in meetings, incentives, conferences and exhibitions (MICE) and wedding travel, and a rapidly growing base of business and leisure travelers.
Credit ratings agency ICRA’s latest forecast predicts that industry revenues will grow 7-9% year-on-year in fiscal 2025 and another 6-8% in fiscal 2026 — a remarkable performance considering the already high base of fiscal 2024. It also expects occupancy in premium hotels to reach 74% by fiscal 2026, while average room rates (ARRs) will exceed INR 8,000 ($95).
Here’s a round-up of this week’s developments:
1. Accor Plans 300 Hotels by 2030
Accor on Wednesday laid out a roadmap to quintuple its growth pace in India. “There is certainly no uncertainty when it comes to India… you are going to have a fast-growing travel and hospitality market for the next 20 years,” said Accor CEO Sébastien Bazin on CNBC on Wednesday.
With 100 properties in 18 years in India, Accor now plans to scale up to 300 in under five years, with 25-35 openings annually. This includes everything from lifestyle brands under Ennismore to affordable chains like Ibis and Mercure, set to grow aggressively through its partnership with InterGlobe Enterprises and a new partnership with Treebo Hospitality Ventures.
Its latest moves include a strategic stake in Treebo and a plan to open 10 Mercure hotels with over 700 rooms in regions that represent a significant growth opportunity in India’s evolving hospitality landscape — Bengaluru, Siliguri, Mysore, Calicut, Haridwar.
Through its partnership with InterGlobe, Accor plans to bring all its hotel operations in India under one new, unified platform. The two companies currently have a joint venture for the Ibis brand in India.
On Thursday, Accor also announced the opening of a second Fairmont in India — Fairmont Mumbai. The brand plans to expand further in India with four upcoming properties — it will open Fairmont Udaipur Palace this year, followed by Fairmont Agra, Fairmont Shimla Fagu, and Fairmont Goa Shiroda.
Accor has also announced a loyalty program partnership with Indian low-cost carrier IndiGo.
2. Ascott Eyes Emerging Cities
Singapore-based The Ascott Limited has announced on Thursday that it aims to expand its portfolio from 5,500 to 12,000 units by 2028, with a sharp focus on Tier-2 and Tier-3 markets.
In just the first quarter of 2025, Ascott announced three major signings in Goa, Lucknow, and Thanjavur, collectively adding 600 units. Ascott’s chief operating officer for EMEA & South Asia, Lee Ngor Houai, emphasizes expansion beyond India’s metros, citing a “significant under-penetration of branded hotels” in smaller cities. Brands like lyf, The Crest Collection, and Oakwood are poised to cater to millennials, digital nomads, and culturally-inclined travelers.
3. IHG’s Midscale Brand Debut
IHG Hotels & Resorts on Wednesday announced it is bringing its newest midscale brand, Garner, to India with two signings in Etawah in Uttar Pradesh and Kathua in Jammu and Kashmir. These properties, managed by Rosastays, will bring affordable experiences to cities with strong wedding, industrial, and pilgrimage traffic.
Sudeep Jain, IHG’s MD for South West Asia, calls Garner a “critical piece” of IHG’s mainstream expansion. The brand enables quick conversions, ideal for a market where speed-to-market is vital. The company’s existing 47 operational hotels will soon be joined by 60 more in the pipeline and luxury brands like Regent and Kimpton may not be far behind.
4. Marriott: Expanding the Premium Playbook
On Thursday, Marriott also announced that it will bring its premium brand Le Méridien to Mumbai in partnership with the Balwa Group. With 161 keys, the hotel will open in 2029 near the international airport.
Talking about the India promise at the Skift India Forum last month, Anthony Capuano, Marriott International CEO, said, “There’s lots of good signs, I think, certainly the amount of investment from the public sector in new airports and from Air India, that’s quite encouraging.”
India is a cornerstone of Marriott International’s future growth, with the company projecting it will become its third-largest market.
5. Radisson Crosses 200 Hotels in India
Radisson Hotel Group on Wednesday announced it has crossed the 200-hotel milestone in India following the signing of five new properties.
With 128 operational hotels (14,209 keys) and 77 more under development (8,619 keys), the latest signings include Radisson Blu Resort & Spa, Pawna Lake, and Radisson Blu Hotel, Lucknow CBD, along with conversions in Bengaluru and Shirdi.
Over the past 14 months, Radisson has signed more than 51 hotels in India, targeting high-growth metro and leisure destinations. “Crossing the 200 hotel market in South Asia is a key milestone in Radisson Hotel Group’s expansion strategy,” said Elie Younes, executive vice president and global chief development officer, Radisson Hotel Group.
6. Hyatt: 100 Hotels In 5 Years
Hyatt on Monday said it is doubling down on India with six of its seven new properties in Southwest Asia slated for Indian cities including Jaipur, Kochi, and Bhopal. Following the signing of 21 new projects in 2024 alone, Hyatt has set a goal of 100 hotels in India within the next five years.
Hyatt currently has 50 hotels in India, spanning nine brands.
Why Everyone Wants In?
“The region’s travel ecosystem is evolving at a fast pace, with a growing emphasis on unique experiences, wellness, and luxury.” – Sunjae Sharma, managing director, India & Southwest Asia, Hyatt.
“This (expansion) strategy is driven by growing interest in India’s lesser-traveled destinations and the significant under-penetration of branded hotels in these cities.” – Lee Ngor Houai, chief operating officer, EMEA, South Asia and China, Ascott.
“One of the world’s most exciting travel markets.” – Sébastien Bazin, chairman & CEO of Accor.
“The opening of Fairmont Mumbai is a significant milestone in our global growth and reaffirms our commitment to India; a market full of energy, cultural richness and opportunity.” – Omer Acar, CEO, Fairmont Hotels & Resorts.
“India is one of our key markets in Asia where we will further amplify our growth and create more possibilities and opportunities to our guests, owners, and positively impact the local communities.” – Elie Younes, executive vice president and global chief development officer, Radisson Hotel Group.
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