India's Homegrown Hotels Brands Vs. Global Players

Domestic mid-market hotel brands in India have competitive edge over international players and hotel technology company Hotelogix says in a new whitepaper. Mid-market Indian hotel brands account for 60% of the total branded rooms in India, it noted. 

India has several hospitality chains operating in the mid-market segment. Indian Hotels Company (IHCL) operates 3-star hotel chain Ginger, while Sarovar Hotels operates Sarovar Portico and Tulip Inn brands in the mid-market segment. Hospitality chain Oyo also launched Oyo Townhouse to cater to the mid-market segment. Budget hotel chian Treebo Hotels also has a mid-segment brand called Treebo Premium. 

The report said that mid-market brands with limited rooms can grow significantly in Tier-2, 3, and 4 cities. “This surge is driven by international brands' considerable challenges in establishing operational capabilities in these regions, where 80%-85% of demand comes from domestic sources,” the paper noted.

International hotels are also entering the smaller markets through tie-ups with Indian companies. Radisson Hotel Group, for instance, has tied up Treebo Hotels to establish Park Inn and Suites by Radisson branded properties in Tier-2 to Tier-5 markets. Accor operates its Ibis brand in India through a collaboration with Interglobe Hotels, a hotel developer operating in the midscale segment.  

In 2023, about 66% of all added hotels were under domestic mid-market brands, according to Aryavir Kumar, managing director of The Clarks Hotels & Resorts. Of these, 53% were in Tier-3 and 4 cities. 

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