British multinational hospitality group IHG, which runs InterContinental, aims to double its operating hotels in India in the next five years, after a slowish phase of development in the past few years. This year, the company has signed 13 new deals across luxury, premium and budget hotels. Its next phase of expansion, beyond its 46 hotels, will focus on Gurugram, Jim Corbett National Park (in Uttarakhand), Mumbai, Amritsar and Goa, said Elie Maalouf, IHG’s CEO, who was on a recent visit to India.
Close to 70% of its new deals are in mid-scale and upper-mid-scale segments, reflecting the company’s focus on this growing market in India. Premium and luxury hotels will still be included in the expansion, but at a slower pace.
“We have 46 open hotels, another 50 or so are under development. In fact, we are announcing today a brand new agreement with Brigade group to build an Intercontinental in Hyderabad for 300 rooms. We’re adding hotels to our development program every year. Yes, we think we’re just getting started in India and it can be much bigger for us than what it is today. But I would say none of the major international companies have a very large position.” – Elie Maalouf, CEO, IHG
India’s strong economic growth, increasing middle-class population, and growing travel demand make it a promising market for the hospitality industry. IHG’s focus on the mid-scale and upper-mid-scale segments is in line with the growing demand for affordable and comfortable hotels in India.
The company’s plans to expand its presence in the country with a variety of brands, including InterContinental, Six Senses, and Kimpton, indicate its commitment to the Indian market. IHG’s expansion plans are expected to create new jobs and boost the local economy in the cities where its new hotels are located.
