IHG Hotels & Resorts Aims to Double Presence in India Amid Growing Economy

IHG Hotels & Resorts, a leading global hospitality company, has announced ambitious plans to double its presence in India over the next 3-5 years. In an exclusive interview with CNBC-TV18, CEO Elie Maalouf cited India's growing GDP and a market inflection point as key drivers behind the expansion strategy.

The company has already made significant progress in 2023, completing 13 agreements across its luxury, premium, and essentials brands. These signings demonstrate IHG's strong performance and increasing market share in locations such as Gurgaon, Jim Corbett, Mumbai, Amritsar, and Goa. Maalouf emphasized that the primary growth driver for IHG in India continues to be the midscale and higher midscale categories, accounting for approximately 70% of the registrations.

IHG's strategic focus is on capturing the growing demand for branded accommodations across India and providing a diverse range of hospitality experiences to travelers with varying needs. The company's ambitious development plan includes world-class brands such as InterContinental Hotels and Resorts, Crowne Plaza, voco, Holiday Inn, Holiday Inn Express, and Staybridge Suites.

In addition to reestablishing its presence in well-known tourist locations, IHG is also targeting high-growth secondary markets like Amritsar, Lucknow, Zirakpur, Kasauli, and Katra. The company's premium conversion brand, voco, is making its Indian debut with a signing in Gurgaon, and the brand has achieved remarkable success in the country since its introduction, with four more signings scheduled for 2023 in major travel and business destinations.

Why this matters: IHG's aggressive expansion plans in India reflect the country's growing economic strength and the increasing demand for branded accommodations. As India's GDP continues to rise, the hospitality industry is poised for significant growth, presenting opportunities for international hotel chains to establish a stronger presence in the market.

Maalouf expressed confidence in IHG's ability to capitalize on India's market potential, stating, "We are strategically focused on capturing the growing demand for branded accommodations across India and providing a diverse range of hospitality experiences to travelers with varying needs." With a robust development plan and a focus on both established and emerging markets, IHG is well-positioned to double its presence in India over the next 3-5 years and strengthen its position as a leading player in the country's hospitality industry.

Key Takeaways

• IHG plans to double its presence in India over the next 3-5 years.
• IHG has completed 13 agreements across luxury, premium, and essentials brands in 2023.
• Midscale and higher midscale categories account for 70% of IHG's registrations in India.
• IHG is targeting high-growth secondary markets and debuting its premium brand voco in India.
• IHG's expansion reflects India's growing economy and increasing demand for branded accommodations.