InterContinental Hotels Group (IHG), the global leader in hospitality, said today that it had aggressive expansion plans for India and hoped to double its presence in India in the next five years. The current portfolio of 46 operating hotels will include another 58 hotels in the pipeline, as IHG aims to capture this growing demand for branded accommodations in India on account of economic growth, growing disposable incomes, and increased travel inside and outside the country.
Expansion Strategy and Focus Areas
The company aims to integrate approximately 50 new hotels into its Indian portfolio as part of a robust signing strategy in 2023, with luxury, premium, and midscale segments among them. Top cities, including Gurgaon, Jim Corbett, Mumbai, Amritsar, and Goa, are in the roadmap. Meanwhile, Zirakpur and Kasauli are the new additions to the list. Both the midscale and upper-midscale sectors are eventually driving this growth, with brands like Holiday Inn and Holiday Inn Express that have been the key players in the thriving domestic tourism.
Meanwhile, in IHG’s brand portfolio, besides major metros, there is Voco, a premium conversion hotel, that is entering the Indian market with the first projects in Gurgaon and then through a succession of deals in other tourist and business centers. The brand’s debut in India will help address the increasing demand from customers for more distinct and quality choices in hospitality.
Market Trends Driving Growth
India’s hospitality sector is undergoing transformative growth, driven by an expanding middle class, a surge in tourism, and government initiatives to promote infrastructure and travel. Haitham Mattar, Managing Director for India, Middle East, and Africa at IHG, highlighted the company’s commitment to leveraging its diverse portfolio to meet these demands. “India’s hospitality sector is experiencing a dynamic transformation,” he noted, underscoring the importance of creating a wider choice of accommodations for travelers.
Operational Excellence and Performance
IHG’s focus on delivering exceptional guest experiences has led to remarkable post-pandemic recovery. In 2023, the group’s occupancy rates exceeded pre-pandemic levels, and revenue per available room (RevPAR) increased by over 30% compared to 2019 and 2022. These achievements are bolstered by IHG’s popular loyalty programs and a resurgence in corporate travel and events, particularly in cities like Delhi and Mumbai.
Sudeep Jain, Managing Director for South-West Asia at IHG, emphasized the role of the company’s Essentials portfolio in driving growth and its strategic plans to expand its luxury offerings. He remarked, “Our Essentials portfolio has worked extremely well for this market… We believe establishing a strong foundation is essential for the expansion of our luxury brands further.”
IHG’s Current Footprint
IHG currently has more than 6,300 properties in operation globally and another 2,000 under development across 18 brands. In India, its six core brands are InterContinental, Six Senses, Crowne Plaza, Voco, Holiday Inn and Holiday Inn Express, serving an enormous market spectrum covering luxury to midscale across this country’s ever-increasing traveler base.
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