IHG Hotels Unveils Bold Plan for 400 Indian Properties by 2030
IHG Hotels & Resorts has announced an ambitious strategy to dramatically expand its footprint in India. The British hospitality giant aims to have 400 hotels either operating or in the pipeline across the country by the year 2030. This represents a massive scaling up from its current presence.
Racing to Capture a Growing Market
The company is targeting a growth rate of more than 50% year-on-year over the next four years. This aggressive push places IHG in direct competition with global rivals like Marriott International and Accor, who are also rapidly expanding their Indian portfolios. The race is on to dominate one of the world's fastest-growing hospitality markets.
Elie Maalouf, Chief Executive Officer of IHG Hotels and Resorts, shared these plans during a recent visit to New Delhi. He emphasized that the Indian market remains in its early stages relative to its enormous economic potential. "To put it in context, for India, which is a continent, not even a nation of one and a half billion people, with the fastest growing GDP, growing infrastructure, growing aircraft and airport network, 400 hotels, that's still nothing," Maalouf stated in an interview.
Shifting Strategy: Asset-Light and Brand Diversification
A key component of this expansion is IHG's commitment to an asset-light business model. The company plans to grow primarily through management contracts and franchising agreements with third-party owners. This approach allows for rapid scaling without heavy capital investment in real estate.
Currently, IHG's mid-scale Holiday Inn brands form the backbone of its Indian operations, accounting for over 70% of its hotels. The new strategy involves significant diversification. IHG intends to introduce two to three new global brands to India. This includes a new premium collection brand, set to be announced next month, and a potential flagship ultra-luxury property.
New hotels are already planned for major markets including Bengaluru, Jaipur, and Mumbai. The portfolio will feature established brands like InterContinental and Crowne Plaza alongside the new additions.
Why India? A Market Primed for Growth
Maalouf pointed to strong structural trends driving demand. "We see that people really want to travel and are preferring experiences to products," he explained. This shift is fueling demand across various travel segments, including weddings, religious tourism, and leisure travel to tier II and tier III cities.
The post-pandemic surge in domestic tourism and corporate travel has created a buoyant hotel market. According to ratings agency ICRA, supply additions continue to lag behind demand. This supports high occupancy rates of 72-74% and rising average room rates for premium hotels.
IHG is signing deals for properties in diverse locations such as Srinagar, Goa, Gurugram, Mumbai, Amritsar, and even the Jim Corbett National Park, which will host the first Voco hotel in the country. Further hotels are planned for Etawah in Uttar Pradesh and Kathua in Jammu & Kashmir.
The Global Context and Future Outlook
While the United States remains IHG's largest market with over 4,000 hotels, the fastest growth is occurring in the East. The company has over 800 hotels in China and expects to reach 1,000 there soon. India, alongside China and Southeast Asia, represents a high-growth region where IHG is pivoting its strategy.
"Mature Western economies aren't growing as quickly as this part of the world," Maalouf noted. He believes there is ample room for multiple players in the Indian market, stating, "So, there will be hundreds and hundreds of hotels in India and room for everybody. It's not really game over in any meaningful way."
Industry analysts support this optimistic view. Sruthi Thomas, Vice President & Sector Head at ICRA Ltd., highlighted the benefits of the asset-light model, saying it "generates fee-based, high-margin income, requires minimal capital, and improves return on capital employed." This model is enabling quicker brand expansion across India with lower financial risk.
IHG's bold roadmap signals a major bet on India's long-term hospitality story, aiming to transform its position from a player catching up to a dominant force in a continent-sized market.
