The InterContinental Hotel Group (IHG) plans to bring at least four of its upscale to luxury hospitality brands to India soon, to add to its current hotel portfolio including InterContinental, Crowne Plaza, Holiday Inn and Holiday Inn Express. The group is keen to introduce its luxury brands Regent, Kimpton, Vignette Collections and Voco to the Indian market, said Sudeep Jain, managing director, south west Asia at InterContinental Hotels Group.
“Regent in Hong Kong is a stunning property. We are keen to bring Regent luxury hotel brand as well as Kimpton, the lifestyle-oriented luxury product here,” Jain said.
Meanwhile, the company has already signed deals for two of its other global brands. Hotel Indigo, which exists in the same segment as Crowne Plaza, has signed up a property in Mumbai. “We have also signed up for Staybridge Suites in Bengaluru. Staybridge Suites is our extended stay product,” Jain said.
In October, IHG launched the Six Senses spa in Ranthambore which is its ultra-luxury, boutique offering for the country.
Jain said the company will be adding nearly 39 hotels to its existing 40 hotels in the country in next three to four years. Another 15 hotels will come up in other parts of south-west Asia.
For IHG, the bulk of the growth in India will come from Holiday Inn and Holiday Inn Express brands. “In terms of sheer volume, the growth will come from those two brands,” Jain said.
In the Indian context, Holiday Inn is the focus and growth area as it is the right product built at the right cost and flexible enough to cater to every market with great returns,” Jain said. “This is one brand I can put in the centre of Delhi and in a tier 4 city. It’s a four-star brand,” he added.
Holiday Inn Express, meanwhile, is a value-driven product that competes with brands like Lemon Tree and Ibis and re-entered the country 3 years ago.
For IHG’s hotel brands across the portfolio, the recovery in recent months has been promising. As the covid 19 wave recedes, mobility improves and business travel shows signs of coming back gradually, the occupancy for IHG hotels is closer to what it was in the pre-pandemic days. “While occupancy stands at about 95% of what it was pre pandemic, the average daily rates or ADRs as a portfolio are 30-40% lower than what they were in 2019,” Jain said. ADRs typically indicate the hotel’s overall performance and profits.
Hospitality consultancy Hotelivate has estimated that the existing rooms supply in India grew by 3.3% over the previous fiscal year of 2020-21, increasing the total number of branded rooms in the country to 1,44,047.
This number, it said, takes into account about 4,093 new rooms that it opened during the year. It added that while the proposed supply for the last two fiscal years was about 60,273 rooms, the overall active development was down to 61% (as compared to 74% in 2018-19).
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