As India's hospitality market hots up, hotel chains race to flag new hotels

Mint from hotel chains and hospitality consultancies, at least three companies—including Radisson and Marriott—have already signed up with over a dozen hotels this calendar year, growing on the back of a big domestic tourism boom and a greater demand for branded experiences.Last week, Hyatt signed two new hotels with the Brigade group in Chennai and Bengaluru, while IHG Hotels signed a hotel in Delhi's Nehru Place while ITC Hotels signed a Storii branded hotel in Mukundgarh Fort Hotel in Rajasthan."In 2026 so far, we have already added nine new hotels signed across markets. Our development strategy remains focused on a balanced mix of tier-1, -2, and -3 markets," said Nikhil Sharma, managing director and chief operating officer, South Asia, for the Radisson Hotel Group.That is the appeal of the asset-light model that now dominates much of the branded hotel business.

In such arrangements, a developer or property owner builds the hotel, while the brand, such as Sarovar, Lemon Tree, Hyatt or IHG, comes in to run it.In return, the hotel operator typically earns management fees linked to revenue, and in some cases, profits, while also benefiting from room distribution, loyalty programmes and brand visibility. For owners, tying up with a known hotel company can improve occupancy, pricing and access to customers.At present, per industry estimates India has only about 220,000 branded hotel rooms.

This number is expected to grow to 350,400 by 2030. India's demand for branded hotel rooms is seen growing at compounded annual growth rate of 8-10% during FY25-28 as against the 5-6% rise likely in premium hotel rooms, as per ratings firm Icra.Many businesses told Mint that over the last decade or so, they have moved to asset-light