Indian brands control 60 pc of midsegment branded hotel rooms in India: Hotelogix

Opportunities for growth in smaller cities

Home-grown mid-segment hotel brands in India control 60 pc of the country’s branded hotel rooms amidst fierce competition from global chains, says Hotelogix, hospitality management software.

Despite facing fierce competition from global hotel chains, home-grown mid-segment hotel brands in India have showcased resilience and innovation, now controlling 60 pc of the country’s branded hotel rooms. Hotelogix, a cloud-based hospitality technology provider, has released a white paper highlighting this rise, shedding light on the success and growth of domestic brands in the Indian market.

In a press statement, Hotelogix says that domestic mid-market brands with limited inventory are set for significant growth in smaller cities and towns, driven by increasing demand and limited presence of international hotel chains in these regions.

It adds that this growth is fuelled by the challenges international brands face in establishing operations in these regions, where 80 pc-85 pc of demand is driven by domestic sources.

The statement adds that the white paper also offers insights from leading hoteliers who have successfully established a niche, uncovering opportunities and strategies to  create a unique identity while meeting guests’ distinct needs.

“In 2023, domestic mid-market brands accounted for about 66 pc of all hotels added. Of this, 53 pc were in Tier III and IV cities,” says Aryavir Kumar, Managing Director, Clarks Hotels & Resorts.

“Home-grown hotel brands capitalise on their strength over international players in drawing flexible contracts with suppliers with competitive cost structures, flexible agreements, and exit terms, which helps them with rapid expansion in Tier II, III and IV cities. In 2023, approximately 70 pc of hotels signed were domestic brands, with an average of 70 rooms per property,” says Vikramjit Singh, Founder & CMD, Alivaa Hotels and Resorts.

“The domestic brands have the flexibility to quickly utilise world-class, home-grown hospitality technology solutions. This gives an edge to domestic brands as these solutions are not only cost-effective but also better suited for Indian markets. Whereas international brands often face restrictions in their choice of technology due to the need for policy uniformity globally. Access to cost-effective, made-in-India cloud-based solutions like Hotelogix is a significant advantage for home-grown mid-segment hotels,” says Philip Logan, Chief Operating Officer, Royal Orchid Hotels.

 “Hotelogix has a unique advantage in working with small, large, and growing domestic hospitality enterprises. It allows us to understand their opportunities and challenges while competing with international rivals. Our white paper aims to engage industry professionals and stakeholders in discussions about exploring innovative strategies to empower home-grown brands and help them flourish on a larger scale,” says Aditya Sanghi, CEO, Hotelogix.