Race Intensifies in India’s Hospitality Market
IHG’s aggressive expansion comes amid intensifying competition from global hotel chains such as Marriott International and Accor, both of which have stepped up investments in India. These players are seeking to capitalise on post-pandemic travel recovery, improved infrastructure, and increasing disposable incomes among Indian consumers.
While IHG operates more than 6,800 hotels globally, its footprint in India remains relatively modest. Historically, the company’s growth in the country has been anchored by mid-scale brands, leaving room for expansion across premium, upper-midscale, and lifestyle segments.
Asset-Light Model at the Core
Central to IHG’s India strategy is its asset-light approach, which allows rapid scaling while limiting capital exposure. Under this model, IHG partners with local developers and owners, providing brand standards, global distribution, and operational expertise.
According to industry experts, this approach is particularly suited to India, where regional developers play a critical role in hotel expansion across tier-II and tier-III cities. The model also enables faster market entry and flexibility in responding to changing travel patterns.
Domestic Tourism and Business Travel Drive Growth
India’s hospitality sector has witnessed a sharp recovery since the pandemic, with domestic tourism leading the resurgence. Improved air connectivity, highway development, and government initiatives promoting tourism have further strengthened the outlook.
Corporate travel has also rebounded, supported by India’s expanding services sector and increased foreign investment. Government data from the Ministry of Tourism highlights sustained growth in both leisure and business travel across major and emerging destinations.
Focus on New Cities and Brand Diversification
IHG plans to expand beyond metro markets and increase its presence in high-growth secondary cities, pilgrimage centres, and emerging business hubs. The company is also expected to introduce more of its global brands to cater to diverse traveller segments.
Analysts note that brand diversification will be key as Indian travellers increasingly seek differentiated experiences, ranging from affordable business stays to premium lifestyle offerings.
Long-Term Confidence in India
With India projected to become one of the world’s largest travel markets over the next decade, IHG’s expansion plan signals long-term confidence in the country’s economic and tourism fundamentals.
If executed successfully, the move could significantly strengthen IHG’s competitive position in India while contributing to job creation and regional economic development.
