How Mhow, Silvassa and Rewa emerged as hotspots for Indian hotels
NEW DELHI : India's small cities and towns, once emblematic of neglected infrastructure and stagnant lifestyles, are now hotspots of rising consumption—a pattern not gone unnoticed by India’s hospitality sector. Demand for hotels and resorts in small cities and towns, especially those categorized as tier 3 and 4, is climbing at an unprecedented rate. Cities such as Mhow, Silvassa and Rewa, which offer attractive investment opportunities at lower land acquisition and operational costs, are emerging as compelling destinations for a good number of hospitality companies.
Major hotel chains including Marriott International and Tata-owned Indian Hotels Co Ltd (IHCL) are making strategic entries into these markets. Marriott opened its 150th hotel in the pilgrimage city of Katra, in Jammu and Kashmir, and IHCL revived its Gateway brand for this new frontier. The Radisson Hotel Group, which already has more than half of its portfolio in tier 2 and 3 markets, recently launched a hotel in Gopalpur in Odisha.
“We recognise the burgeoning potential in tier 3 and 4 cities, and our recent signings and upcoming pipeline are a testament to that," said Nikhil Sharma, managing director and area senior vice president, South Asia, Radisson Hotel Group. Radisson has signed agreements to open new hotels in destinations such as Chail in Himachal, Raipur in Chhattisgarh, Sonipat in Haryana, and Vrindavan in Uttar Pradesh. It is also expanding its Park Inn and Suites by Radisson brand in southern India with new hotels across Kerala, including at Guruvayur and Ambalavayal.
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