- Hotelogix: Large brands to dominate India’s mid-scale hotel market by 2030.
- About 30 percent of Indian mid-scale brands are set to expand overseas.
- Nearly one in three multi-property mid-scale brands use cloud-based systems.
INDIA’S MID-SCALE HOTEL market will see large brands control up to 80 percent of rooms by 2030, according to Hotelogix. Additionally, about 30 percent of Indian mid-scale brands are expected to expand globally.
The Hotelogix whitepaper, “India’s Domestic Mid-Scale Hotel Brands – Consolidation, International Expansion and Technology Adoption”, found that the segment accounts for about 60 percent of India’s branded hotel rooms and is growing at a 13 percent CAGR, driven by urbanization, improved connectivity and domestic travel.
“India’s mid-scale hotel brands are leveraging local insights and agile business models to capture new demand in emerging cities,” said Aditya Sanghi, Hotelogix CEO. “The segment’s value is projected to rise from around $3.75 billion in 2023 to $6.3 billion by 2030, driven by consolidation, brand expansion and technology integration.”
By 2030, large domestic and international hotel chains will control 75 to 80 percent of branded mid-scale rooms through mergers, acquisitions and franchise partnerships, enabling stronger brand portfolios and operational efficiencies, the report said.
Aryavir Kumar, managing director of The Clarks Hotels & Resorts, said consolidation will accelerate, with more Indian mid-segment brands joining large domestic and global chains.
“It will help both stakeholders stay relevant in this competitive industry,” he said.
Tech, IPOs and global expansion
Nearly one in three multi-property mid-scale brands are using cloud-based systems, according to Hotelogix. By 2030, this is expected to reach 60 to 70 percent, enabling centralized management, scalability and data-driven decisions.
“Affordable, modern made-in-India cloud solutions now enable small brands like ours to digitise operations, making technology adoption much more accessible than before,” said Jaideep Ahuja, Ahuja Residency's CEO.
Around 5 percent of Indian mid-scale hotel brands are publicly listed, including Royal Orchid Hotels Ltd, Suba Group of Hotels, Grand Continent Hotels Ltd and Lemon Tree Hotels. The whitepaper projects that 6 to 8 percent more brands will pursue IPOs by 2028, reflecting rising investor confidence.
Arjun Baljee, president of Royal Orchid Hotels, said hospitality is strong across segments and will continue to attract capital, with asset-light, growth-focused brands appealing to investors.
India’s mid-scale hotel brands are expanding abroad, the report said. Since 2020, 15 to 20 brands have entered destinations such as the UAE, Nepal and East Africa, mostly through franchise or management models. The report projects that 30 percent of mid-scale brands will expand overseas by 2030, targeting the outbound Indian traveler market.
“By 2030, about 30 percent of India’s mid-scale hotel brands will cross borders, transforming themselves into global ambassadors of authentic Indian hospitality,” said Anant Apurv Kumar, Brij Hotels’ founder.
IHG Hotels & Resorts aims to have more than 400 operational and in-development hotels in India within five years, up from more than 50 operational and 80 in development, totaling about 12,000 rooms.
