India is our top priority market this year: President, Asia Pacific, Hilton

'It feels a little bit like China did 10 years ago and we expect this momentum to continue this year as well'

With a sustained boom in domestic travel, global hospitality giant Hilton is set to triple its footprint in India by 2027. In an exclusive interview with Business Standard’s Akshara Srivastava, Alan Watts, president, Asia Pacific, Hilton, talks about the reason behind this growth optimism and the group’s expansion plans for the country. Edited excerpts:

How was the performance of your India business over the past year?

If we talk of the Hilton story in India, it has been a sub-segment of the hospitality success story in the country.

The deal flow has been better than any time in India’s history, or at least recent history, during the period. We haven’t seen growth like this since pre-2008. Last year, our signings reached an all-time high of six, and we successfully introduced two new brands to the country: Waldorf Astoria and Curio Collection. We saw an upwards of double-digit increase in both RevPAR (Revenue per average room) and revenue in the country.

What do you attribute this performance to?

I would like to think that it is not just the pent-up travel demand, but a new normal in the travel and tourism sector.

Consumer confidence and infrastructure development are the two major factors that have built this industry worldwide. The amount of money that the government is spending on infrastructure is, in my opinion, the biggest signal of growth for our industry than anything else.

It feels like what China did 10 years ago and we expect this momentum to continue this year as well.

How do you plan to expand your footprint in the country in the coming year?

We are signing our third 246-key Conrad (a luxury offering by Hilton) in Jaipur today, which is slated to open in 2027. We have also signed a 140-key Hilton in Lucknow, set to open in early 2025.

We have 26 trading hotels in India and 20 more in the pipeline, of which we plan to open four to six properties this year itself. We will add more than 500 keys to our portfolio this year and 1,500 keys by 2026. We are on course to triple our India estate to 75 trading and pipeline hotels by 2027.

How do you see the Indian market performing in the coming years?  

India is our top priority market this year. In the Indian market, it is assumed that the current boom represents the new normal. In terms of pure growth rate, the market has been outpacing all peer countries in the Asia Pacific region. The Indian market has exponential growth potential and will see a cycle of sustained growth. I’d like to think that non-performing loans are a thing of the past and we are insulated this time with domestic consumer growth, infrastructure, and policy. I certainly see a long sunrise for the industry.