‘Our growth strategy is focussed on expanding in key markets’

Hilton is renewing its commitment to the dynamic South Asia region with an ambitious and long-term growth strategy. With 50 hotels across South Asia (trading and pipeline in India, Nepal, Bhutan, and Bangladesh), we aim at tripling our estate to 75 trading and pipeline hotels by 2027 with a strategic focus to grow the estate, diversify our brand offerings and address all key city gaps. Despite inflationary pressures as well as rising construction and financing costs, the boom of travel and tourism continues its pre-pandemic upward trajectory. We are confident of tapping into this buoyancy and fast track our expansion plans adequately backed by Hilton’s portfolio of award-winning brands and proven track record of industry-leading owner returns.  

“We will continue to deploy our focussed service brands at scale, leading with Hilton Garden Inn, and offering owners and operators everything they need to be successful: flexible designs, regional programming, and optimised return on investment, deploying new brands into new markets to capture the enormous growth opportunity. We have maintained a strong pace of openings and signings in the luxury, full and focused service segment, averaging one per month since the beginning of 2024, and hopefully with the pace we have now picked, we aim to broaden our footprint and brand offerings in South Asia,” shares Jacob Purackal, Senior Director, Development - South Asia, Hilton.

Navigating South Asia’s diverse market landscape

India’s hospitality landscape is undergoing a transformative shift, extending its reach beyond major metropolises into the burgeoning Tier II and Tier III cities. These emerging urban areas, driven by rising incomes, improved infrastructure, and a young, adventurous consumer base, are set to become pivotal in the country’s hospitality and tourism boom.

“The growth in these cities is remarkable. With disposable incomes on the rise, we’re seeing the emergence of a new class of enthusiastic travellers. Enhanced infrastructure, such as a 70 per cent increase in Tier II city airports since 2014, is significantly opening up these destinations. The improved connectivity through better roads and transportation is making these cities more accessible, boosting both business and leisure travel. This has led to a substantial increase in hotel room inventory, catering to the rising demand,” says Purackal.

Hilton’s brand strategy is sharply focussed on capitalising on this trend. “We’re tapping into diverse markets and understanding regional trends has been crucial to our success. Our knowledge of evolving market dynamics and owner preferences has facilitated successful partnerships across South Asia,” he notes.

Looking ahead, Hilton sees immense potential in the focussed service segment, particularly with the Hilton Garden Inn brand. “We’re committed to regionalising our brands to meet the unique needs of Indian customers. We’re also exploring the introduction of additional brands, such as Hampton by Hilton and Spark,” explains the Senior Director, Development - South Asia at Hilton.

Hilton’s strategy involves growing with the right partners, in the right locations, and leveraging strategic license agreements to scale efficiently. “The opportunity for growth in these emerging cities is vast. We’re poised to harness this potential and deliver a wide range of offerings to diverse consumer segments,” he shares.

Expanding presence in South Asia

Hilton is making significant strides in South Asia, with an impressive portfolio of projects that showcase its ambitious growth strategy. At present, it operates five brands across 50 hotels in the region, encompassing both existing properties and those in the pipeline. One notable milestone is the recent opening of DoubleTree by Hilton Bengaluru Whitefield, marking the 11th DoubleTree property in India. This expansion underscores Hilton’s commitment to broadening its footprint across key urban centres. Additionally, the debut of the flagship 172-room property in Kathmandu, Nepal, in July this year has further solidified presence in South Asia.  

Looking ahead, Hilton plans to continue this momentum with the upcoming openings of Hilton Gurugram Baani City Centre, Hilton Garden Inn Surat, and a new property in Jabalpur within the year. “Our growth strategy is focussed on expanding in key markets and exploring new opportunities,” says Purackal. The flagship Hilton brand is also expanding, with new signings in Udaipur and Lucknow. In 2027, Hilton will introduce its prestigious Waldorf Astoria brand in Jaipur, while the Curio Collection will debut in Bengaluru in 2025. “We see vast potential in Tier II and III cities where rising leisure demand and the revival of domestic travel create exciting opportunities,” he explains.

Moreover, Hilton is addressing the undersupply of premium hotels in major cities like Delhi and Mumbai. Next year, Hilton will further diversify its portfolio with the introduction of Curio Collection by Hilton in Whitefield, Bengaluru. “Bengaluru is a strategic location for us, representing Hilton’s largest estate in India with five brands already established,” he adds.

Balancing brand consistency

Hilton’s commitment to maintaining brand standards across its diverse portfolio in South Asia is grounded in a robust set of comprehensive guidelines. These guidelines establish the core elements that define each Hilton brand, ensuring a uniform level of quality and guest experience across all properties. “Consistency is key to our brand’s success. We have developed detailed brand guidelines that maintain the high standards our guests expect. These guidelines provide a solid foundation, but they also allow for flexibility to adapt to local market conditions,” says Purackal

Hilton’s approach ensures that while each property adheres to its core brand values, it also reflects regional characteristics and resonates with local travellers. This balance is achieved through close collaboration with partners, developers, and owners. “Our local partners play a crucial role in integrating regional elements into the property design and service offerings. This collaboration ensures that our hotels not only meet global standards but also cater to the unique preferences and expectations of local guests,” he explains.

By aligning brand identity with regional market needs, Hilton manages to offer a consistent yet locally relevant experience. This strategy helps maintain the essence of each Hilton brand while allowing properties to stand out and connect with their surroundings, enhancing the overall guest experience in South Asia.

The power of partnerships

In South Asia’s diverse market, Hilton’s strategy hinges on strong partnerships and local collaborations to address unique regional needs. “We’re deeply committed to listening to our guests and owners, and tailoring our brands to fit this key growth market. This year, Hilton’s strategy took a major leap with high-profile partnerships, including a landmark global brand ambassador agreement with Bollywood star Deepika Padukone. This was our largest ambassador partnership to date, focusing on drawing the Indian consumer,” he explains. The campaign, It Matters Where You Stay, has been a focal point across major Indian metros.

Hilton has also enhanced its global marketing platform, Hilton. For The Stay, with localised investments and new collaborations, featuring celebrities like Sidharth Malhotra. “Our approach is to prioritise the local audience, and these high-profile partnerships significantly boost our engagement and brand appeal,” he adds. These strategic alliances are instrumental in deepening connections with consumers and driving the brand’s growth in the vibrant Indian market.

Shaping the future  

Hilton continues to lead in technology and innovation, setting new industry standards with cutting-edge solutions globally. Central to Hilton’s strategy is its revamped Central Reservation System (CRS), introduced in May 2020. “By moving our entire reservation system to the cloud, we became the first major hotel chain to do so,” Purackal explains. This advanced system, developed over several years, has significantly reduced costs, improved revenue management, and enhanced the booking experience with innovative features. One standout feature is Confirmed Connecting Rooms by Hilton, which allows guests to book adjoining rooms at the time of reservation – a popular choice for families and groups. “This feature has been a major hit, giving guests peace of mind about their accommodations,” adds he.  

Also expanding is mobile messaging capabilities across its 7,000 global properties by the end of 2024. Developed in collaboration with KIPSU, this system supports communication through the Hilton Honors app, SMS, WhatsApp, and more. “This allows for real-time, two-way messaging between guests and hotel teams, making interactions more seamless and responsive,” Purackal adds. Additionally, the Digital Key feature in the Hilton Honors app enables a touchless check-in experience, allowing guests to select and unlock their room directly from their phone. “Our commitment to digital transformation is reflected in these innovations, making every step of the guest journey – from booking to billing – more seamless and efficient,” he shares.

Navigating challenges

Hilton is tackling several significant challenges in developing properties across South Asia. “The hospitality industry is grappling with a severe manpower shortage, exacerbated by the Covid19 pandemic. Reports indicate a persistent 20-25 per cent shortfall in skilled labour, which is impacting industry recovery. Addressing this shortage is crucial for meeting rising demand and achieving growth,” he says.

Seasonal demand fluctuations also pose a challenge, requiring careful management of staffing levels during peak and off-peak periods. “Our approach involves strategic workforce planning to ensure we can scale up or down as needed, maintaining service quality throughout the year,” explains Purackal.

Inflationary pressures have further complicated operations, with increased costs for food, beverages, staff, and maintenance. “This rise in operational costs affects both owners and operators,” he acknowledges. Hilton’s strategy includes working closely with property owners to navigate these financial pressures and capitalise on the growth potential within India’s burgeoning hospitality and tourism sector. “Our focus is on collaboration and innovative solutions to ensure sustainable profitability and growth,” he concludes.