Hilton has announced an ambitious expansion strategy for India, with 60 hotels currently under construction and commitments for another 400 properties with major partners. According to reports from Business Standard, this represents a significant commitment to the Indian market as the company positions India as one of the world's most exciting travel destinations. The expansion focuses on tier-II and tier-III cities, with the company shifting from flagship properties in tier-I cities towards mid-scale brands such as Hampton and Spark by Hilton aimed at domestic travellers.
Alan Watts, Hilton's president of Asia-Pacific, has predicted that India will become the third-largest lodging market in the world. As reported by CNBC, Watts called India the most exciting travel and tourism market globally for the next decade, citing strong momentum across Asia-Pacific markets including Southeast Asia and Japan. The company is betting on rising travel demand, religious tourism, and growth in tier-II and tier-III cities as key drivers of this expansion strategy.
Hilton's India strategy includes a significant focus on religious tourism destinations. According to Business Standard, Watts noted there is almost no branded supply at pilgrimage destinations such as Ayodhya and Tirupati, despite enormous crowds they attract. Indian real estate owners are funding the build-out of hotels in these locations themselves, with Watts reporting that they are approaching Hilton to manage their properties without requiring balance sheet commitments from the company.
The expansion strategy includes collaborations with established Indian real estate developers, with Embassy Group emerging as a key partner in the hospitality sector. As reported by Business Standard, this partnership leverages Embassy Group's 30-year track record in Indian real estate, including their Embassy One North project spanning 200 acres in North Bengaluru with a 50-acre enclave of luxury villas. The collaboration demonstrates how established Indian developers are partnering with global hospitality brands to capitalize on India's growing tourism market.
