IHG believes India has the potential of new luxury brands; launches new medium-market hotel brands every year
IHG Hotels & Resorts believes there is a great potential for expanding its luxury portfolio in India – although not through Six Senses, which is currently not through its existing brand, has not seen additional growth. Kenneth MacPherson, CEO of Europe, Middle East, Asia and Africa, said the organization is exploring opportunities to bring its three other high-end global brands (Regent, Kimpton and Vignette Collection) to the country.
“At present, we will look for exclusive growth for six senses. There is also an opportunity to attract three other luxury brands we haven’t brought here so far, such as Regent, Kimpton and Vignette Collection, which also has great potential,” he said. Of the 27 six sense attributes around the world, 2 are in India.
MacPherson told Mint that the UK-based hotel company, which operates brands such as InterContinental, has stepped up its expansion in India and will launch a new hotel brand here by the end of the year. It operates 7 of the 20 brands worldwide currently in India. According to him, InterContinental was first launched in India in the 1960s, but there are still strong brand recalls.
IHG has signed nine new hotels in India so far this year, including one of Jim Corbett, where it will mark the debut of its Crowne Plaza brand. Other properties coming up include the Holiday Inn in Puri, Odisha and the Hotel in Mumbai-Goa Highway in Bangalore and Kasauli. Usually, when developed as Greenfield Projects, the hotel needs to be built between 3-5 years.
New Brand
One of the new introductions is Garner Hotels, one of the company’s recent acquisitions of global brands. IHG announced this week the brand’s Indian entries, including two properties – Etawa, Uttar Pradesh and Katua, Chamu and Kashmir. These are expected to open in 2026 and 2027 and are suitable for affordable parking passengers. The brand follows a franchise or third-party model of the Rosaoul Hotelco Pvt. Ltd (Rosastays) is managing both properties and helping to expand the Indian brand. Garner is a mid-market, mainly based on conversions. The hotel brand conversion is part of the existing hotel, which is renamed as part of a larger hotel chain.
IHG global CEO Elie Maalouf said in 2024 that the UK hotel company will continue to increase its operations in India, aiming to double the number of hotels operating in the next five years. The company signed 17 new deals in 2024 and currently has 47 hotels in India, with about 70 of them in the pipeline that can be converted into about 9,200 rooms. Its existing hotels account for 8,000 rooms.
The next phase of growth will span cities such as Mumbai, Amritsar and Goa, with new signings distributed in the medium and upper stages. The complete pipeline will be realized within the next 3-5 years. IHG’s other global brands include six senses, Voco Hotels, Holiday Inn Resort and Holiday Inn Express. MacPherson said the Holiday Inn brand generates the highest revenue in its Indian portfolio.
Choose a brand
IHG is selective in the brands it brings to the country, even as it continues to pursue growth. Last year, it signed a property with Travel Group in Hyderabad, focusing mainly on its city brands. Maalouf pointed out that India still has a smaller brand hotel footprint than China, but its trajectory is promising. While this is not yet the top 10 markets for IHG, India is one of the top 10 “emerging” or “high growth” markets for the company worldwide, McPherson added.
IHG is not the only hospitality major with an ambitious plan in India. Other hotel companies have also announced record signatures in recent weeks. Marriott International said it had a record signing year, while Hyatt had significantly expanded its operations in the country.
IHG’s IHG revenue in India increased by 8.6% in 2024, higher than its average 6.6% in Europe, Middle East and Africa (EMEA) regions. MacPherson said its national occupancy rate is 70%, about 2 percentage points higher than the industry average.
India currently has about 200,000 branded hotel rooms, including those operated by IHG, and the number is expected to increase to 300,000 by 2030. The Hotel Consulting Company’s Hotel Activity Report, released in October 2024, noting that approximately 16,000 new rooms were added to India’s total hotel inventory in India, which is located in the FY24’s total inventory, spanning metropolis and smaller cities and smaller, smaller, Emerging Markets based on broad growth.
Key Points
- IHG Hotels & Resorts plans to bring luxury brands like Regent, Kimpton and Vignette Collection to India, while six senses have not seen more growth yet.
- A new mid-market brand, Garner Hotels, will debut in India and have properties in Uttar Pradesh and Chamu & Kashmir, which will open in 2026 and 2027, cater to affordable parking travelers.
- IHG aims to double the number of hotels operated in India over the next five years.
- Upcoming hotel projects include Crown Plaza in Jim Corbett, Holiday Inn in Odisha and real estate in Mumbai, Goa, and Amritsar in the mid- and upper stages.
- The number of branded hotel rooms in India is expected to increase from 200,000 to 300,000 by 2030, while IHG marks India as one of the top ten emerging markets in the world.
