IHG Hotels sets ambitious plan to have 400 properties signed and in operation in India by 2030

The aggressive move comes as global rivals Marriott International and Accor are expanding their India portfolios to capitalize on the post-pandemic surge in domestic tourism and corporate travel. While IHG is a major global player with more than 6,800 properties, it is now trying to catch up in India, where its mid-market brands have long formed the backbone of its presence in the country.

Speaking during his visit to New Delhi, Chief Executive Officer Elie Maalouf said that the Indian market is in its infancy compared to its economic potential. He noted that the region, as well as the Middle East and China, has achieved record hotel deals for three consecutive years, as IHG redirects its growth strategy towards high-margin ‘asset-light’ models in the East.

The expansion will enable IHG to diversify its India portfolio beyond its core Holiday Inn brand. The company plans to introduce three new global brands to the country, including a premium collection brand to be determined next month, as it seeks a flagship opportunity to launch an ultra-luxury property in the region.

IHG currently operates more than 6,800 hotels worldwide with more than one million rooms and owns nearly a dozen brands.

The best is ahead

“To put this in context, for India, which is a continent, not even a country of one and a half billion people, with the fastest growing GDP, growing, infrastructure, growing, network of aircraft and airports, 400 hotels, this is still nothing,” Maalouf said. Mint in an interview. Every hotel company is just starting out here. “We have over 800 hotels in China and we’ll be at 1,000 by the end of this year or early next year, with 650 in development. So India will have hundreds of hotels and enough room for everyone. That doesn’t actually mean the game is over in any meaningful way.”

He added that its biggest market is still the United States, but the fastest growth is happening further east in China and other parts of Asia. It has more than 800 hotels in China and more than 4,000 hotels in the United States, its largest market.

“Mature Western economies are not growing as fast as this part of the world. In a sense, we’re growing everywhere. We’re growing a lot in the number of hotels in the US and Europe, but that’s a lower percentage of a much larger base. In the East and India, in China, in Southeast Asia, we’re growing at a higher percentage from a smaller base,” he said.

Of course, hospitality companies like IHG grow primarily through asset-light models, earning fees by managing or franchising hotels owned by third parties, using their brands, systems and distribution networks without investing capital in real estate.

New hotels are opening in markets such as Bengaluru, Jaipur and Mumbai, with brands such as InterContinental and Crowne Plaza continuing to grow, among other high-end locations. But Holiday Inn and Holiday Inn Express together account for more than 70% of IHG’s operating hotels in India and the majority of hotels currently under development.

growing fast

The Indian hotel market has been buoyant for the last few years, especially during the post-pandemic recovery period. Many international companies, such as Marriott International and Accor, are vying for a larger presence in the country and are steadily accelerating their growth plans.

India’s hotel industry is entering its next phase of growth, where brands are expanding beyond traditional luxury business hotels into multiple formats and price points, fueled by strong domestic demand and faster rollout with asset-light models, according to a recently published report. From weddings, religious tourism, events, events and World War II. and III. Demand from leisure travel to tier cities is now large enough to support midsize, budget, lifestyle and destination-focused brands. Meanwhile, management contracts and franchise models enable faster brand expansion across geographies with lower capital risk.

While he did not give a specific number, Maalouf said this was a year in which average daily rates increased globally, in the US, Europe, India, China and Southeast Asia. “We’re seeing that people really want to travel and they’re choosing experiences over products. People love live experiences. They love traveling, whether for business or pleasure. We open new destinations to them and they benefit from them. So it’s a secular structural change where people value experiences much more,” he said.

Signings are being made in many places in India, including Srinagar, Goa, Gurugram, Mumbai, Amritsar and the opening of the first Voco Hotel in Jim Corbett National Park. It also has hotels planned for other locations such as Etawah (Uttar Pradesh) and Kathua (Jammu & Kashmir) and additional hotels in Kutch and Bhiwadi.

high demand

According to rating agency Icra, supply additions continue to track demand, supporting firm occupancies of 72-74% in FY26 and growth in average room rates. ₹8,200-8,500 for premium hotels. Even as asset-light strategies gain traction, large hotel groups are expected to retain significant properties to anchor brand prestige; This leads to a mixed ownership model as industry revenues continue to grow despite a high base.

Execution Ltd. “There is a growing preference for asset-light operating models, including management contracts and franchise models, that are fee-based, generate high-margin revenue, require minimal capital, and improve return on capital employed and free cash flows,” said Sruthi Thomas, vice president and industry head of corporate ratings.