Hilton and Marriott are leading a push by global hotel chains into India’s smaller cities, investing in and opening mid-range lodging to accommodate a surge in domestic travel and cater to the country’s price-conscious tourists.
Marriott earlier this year took an undisclosed minority stake in Mumbai-based Concept Hospitality, which will work with the global hotel group to expand its room count in India to 50,000 within five years from about 30,000 currently. Hilton wants to grow its footprint in India 10-fold in the next decade from the 60 hotels it has in operation or under construction.
Growing wealth among a newly minted middle class and government spending on new highways and airports have spurred wanderlust in the world’s most populous country, but the number of quality accommodations is failing to keep up with demand, said industry experts and executives.