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

The aggressive push comes as global rivals Marriott International and Accor expand their Indian portfolios to capitalize on a post-pandemic surge in domestic tourism and corporate travel. Despite being a major global player with over 6,800 properties, IHG is currently playing catch-up in India, where its mid-scale brands have long formed the backbone of its presence in the country.

Chief executive officer Elie Maalouf, speaking during a visit to New Delhi, said the Indian market is in its infancy compared to its economic potential. He noted that the region, alongside the Middle East and China, has driven record hotel signings for three consecutive years as IHG pivots its growth strategy toward higher-margin ‘asset-light’ models in the East.

The expansion will see IHG diversify its Indian portfolio beyond its core Holiday Inn brand. The company intends to introduce up to three new global brands to the country, including a premium collection brand to be named next month, while hunting for a flagship opportunity to debut an ultra-luxury property in the region.

IHG now operates over 6,800 hotels worldwide with more than one million rooms, and has about a dozen brands.

The best is ahead

“To put it in context, for India, which is a continent, not even a nation of one and a half billion people, with the fastest growing GDP, growing, infrastructure, growing, aircraft, and airport network, 400 hotels, that’s still nothing," Maalouf told Mint in an interview. Every hotel company is just getting started here. “In China, we have over 800 hotels, we will be at 1,000 hotels by the end of this year or early next year, with 650 under development. So, there will be hundreds and hundreds of hotels in India and room for everybody. It’s not really game over in any meaningful way."

He added that its largest market is still the US, although the fastest growth is happening further East in China and other parts of Asia. In China, it has over 800 hotels, and in the US, its largest market, it has over 4,000 hotels.

“Mature Western economies aren't growing as quickly as this part of the world. In a way, we're growing everywhere. In the US and Europe, we're growing a lot in the number of hotels, but it's a lower percentage of a very bigger base. In the East and India, in China, Southeast Asia, we are growing at a higher percentage of a smaller base," he said.

To be sure, hotel management firms such as IHG primarily grow through asset-light models, earning fees by managing or franchising hotels owned by third parties, while using their brands, systems and distribution networks without investing any capital in real estate.

New hotels are coming up in markets such as Bengaluru, Jaipur, and Mumbai, among other top-tier locations, across brands like InterContinental and Crowne Plaza, which continue to expand. However, Holiday Inn and Holiday Inn Express together account for over 70% of IHG’s operating hotels in India, as well as the majority of its hotels currently in development.

Growing fast

India’s 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, have been vying for a greater presence in the country and have steadily accelerated their growth pipelines.

According to a recent report, India’s hotel sector is entering its next growth phase with brands expanding beyond traditional upscale business hotels into multiple formats and price points, backed by strong domestic demand and faster rollouts through asset-light models. Demand from weddings, religious tourism, events, activities, and leisure travel to tier II and tier III cities is now broad enough to support mid-scale, budget, lifestyle, and destination-led brands. Meanwhile, management contracts and franchise models are enabling quicker brand expansion across geographies with lower capital risk.

While not providing a specific number, Maalouf said it was a year of growing average daily rates worldwide, across the US, in Europe, and in India, China, and Southeast Asia. “We see that people really want to travel and are preferring experiences to products. People love live experiences. They love travel, whether for business or for pleasure. We're opening up new destinations for them, and they're taking advantage of them. So that’s a secular structural change where people are just valuing experiences a lot more," he said.

In India, it is signing in locations across the board, including Srinagar, Goa, Gurugram, Mumbai, Amritsar and the first Voco Hotel opening in Jim Corbett National Park. It also has hotels planned for other locations, such as Etawah (Uttar Pradesh) and Kathua (Jammu & Kashmir), with additional hotels in Kutch and Bhiwadi.

High demand

According to ratings agency Icra, supply additions continue to trail demand, supporting firm occupancies of 72-74% in FY26 and rising average room rates of ₹8,200-8,500 for premium hotels. Even as asset-light strategies gain traction, large hotel groups are expected to retain marquee owned properties to anchor brand prestige, leading to a mixed ownership model as sector revenues continue to grow despite a high base.

“There is also an increasing preference towards asset-light operating models, including management contracts and franchise models, which generate fee-based, high-margin income, require minimal capital, and improve return on capital employed and free cash flows," said Sruthi Thomas, vice president & sector head, corporate ratings, Icra Ltd.