Locals Shine

Homegrown mid-segment hotel groups are leading the way in India's hospitality industry.

- Sivaprasad Gangadharan

Small but mighty, mid-market domestic hotel groups in India are shaking up the hospitality industry with their innovative and forward-thinking approach. These homegrown names have become popular brands and are growing rapidly.

While international hotel chains have typically dominated the upper-luxury market, not all of them established a strong presence in the mid-market segment. This is where these made-in-India mid-size hotel groups have found success. Multiple reasons have contributed to their significant growth in the past few years. Some of them are:

• They connect well with the domestic traveller, mainly middle/upper-middle class, with increased disposable income.

• They have a strong sense of character, driven by their local roots.

• They understand how to leverage local elements and culture. 

• Plus, they are good at swiftly expanding their portfolio in tier 2 and 3 cities.

One exceptional quality they possess is the ability to provide their guests with one-of-a-kind, genuine experiences. For instance, a comfortable and charming resort in a national park amidst flourishing greenery could outperform a five-star hotel in a bustling city.

The present and future

Progressive and young Indian hotel chains are striking deals with independent hotel owners and developers to grow their footprints. As per reports, contracts in this hotel category grew by around 70% to 75% by the end of 2022 against 2019.