Hotelogix's recent white paper highlights that home-grown mid-segment hotel brands in India comprise approximately 60 per cent of the total branded rooms, showcasing their competitive strength against international brands. The report, titled "The Rise and Rise of India's Home-grown Mid-segment Hotel Brands," explores the unique opportunities and challenges these domestic brands face in the hospitality sector.
"Hotelogix has a unique advantage in working with small, large, and growing domestic hospitality enterprises. It allows us to understand their opportunities and challenges while competing with international rivals. Our white paper aims to engage industry professionals and stakeholders in discussions about exploring innovative strategies to empower home-grown brands and help them flourish on a larger scale,” says Aditya Sanghi, CEO of Hotelogix.
Key insights reveal that mid-market domestic brands are thriving, particularly in tier II, III, and IV cities, where international brands struggle to establish operations. Aryavir Kumar, Managing Director of The Clarks Hotels & Resorts, says, "In 2023, domestic mid-market brands accounted for about 66 per cent of all hotels added. Of this, 53 per cent were in tier III and IV cities."
Industry leaders emphasise that home-grown brands benefit from more flexible supplier contracts and cost-effective technology solutions tailored to the Indian market. According to Vikramjit Singh, Founder & CMD of Alivaa Hotels and Resorts, "In 2023, approximately 70 per cent of hotels signed were domestic brands, with an average of 70 rooms per property."
Philip Logan, Chief Operating Officer of Royal Orchid Hotels, explains that domestic brands have the flexibility to quickly utilize world-class, home-grown hospitality technology solutions. This gives an edge to domestic brands as these solutions are not only cost-effective but also better suited for Indian markets. Whereas international brands often face restrictions in their choice of technology due to the need for policy uniformity globally. "Access to cost-effective, made-in-India cloud-based solutions like Hotelogix is a significant advantage for home-grown mid-segment hotels," says Logan.
Despite their success, challenges remain. Domestic brands face hurdles in attracting top talent, navigating complex regulatory landscapes, and brand perception that international players bring. They also need to up their game to compete with the established presence of international chains in tier-I cities. “The allure of global brands poses a challenge for domestic players in terms of talent acquisition and retention,” noted Jaideep Ahuja, Managing Director & CEO of Ahuja Residency.
Nonetheless, the overall outlook is positive, with expectations of substantial growth in the Indian hotel market, projected to reach $47.50 billion by 2030. The white paper positions domestic mid-segment brands as key players in the future of India's hospitality industry.
