Indian hospitality chains chart global routes; target UK, West Asia markets

Hotels planned in UK, Western Asian countries and African continent

Indian hospitality companies are spreading their wings far beyond the country’s borders, charting expansion plans in the UK, West Asian countries and even in the African continent, even as Indian tourists flock to international destinations.

 

On Thursday, the country’s largest hospitality chain, Tata group-owned Indian Hotels Company Limited (IHCL) announced its debut in South Africa’s Kruger National Park with three luxury lodges.

 

“As the demand for purpose-led travel continues to grow, Taj with its differentiated offerings brings exceptional safari experiences. Our foray into Kruger National Park builds on this legacy, offering travellers an authentic connection with nature,” said Puneet Chhatwal, managing director and chief executive officer at IHCL.

 

The company, which expects to achieve double-digit growth in the financial year 2025-26 (FY26), plans to open 30 hotels in the year, which will also include a 126-key Taj property in Frankfurt by the fourth quarter.

 

The company’s international expansion will be through the capital-light model.

 

Internationally, ten new properties are in the pipeline, which will include two offerings in Bahrain in three years and two in Saudi Arabia in the next three-four years. It currently has 28 properties, including in New York, the United Kingdom, and the Maldives, which contributed to nearly 20 per cent of the company’s consolidated revenues in FY25. 

 

Since the start of the year, Chhatwal said the San Francisco property has started to see a growth comeback and occupancies have also gone up.

 

“We do believe that San Francisco will be a big positive surprise this year. April was extraordinarily good for San Francisco, but that changes in that city based on the big events that they get. In New York, too, our efforts are beginning to pay off. And for the first time, P&L was Ebitda positive, and we think this journey will continue in a positive way also this year,” he said. 

   

For the coming financial years, the share of international growth will continue to rise alongside domestic growth, with the overall pie increasing.

 

Indian luxury giant Oberoi Hotels, too, has mapped out an extensive international expansion, including the much awaited 21-key Oberoi-branded property set to open in Mayfair in central London in 2028.

 

With 497 international keys under the Oberoi brand, the company is looking at adding 290 keys to this portfolio by 2028, including two floating boat hotels of seven keys each, a Nile cruiser of 25 keys.

 

The London property will be owned by Oberoi parent East India Hotels, while the rest will be run through management contracts.

 

Another industry major, Bengaluru-headquartered Royal Orchid Hotels, is exploring locations in The Maldives and some of the South East Asian countries for international growth, even as it looks to expand its existing overseas presence in Sri Lanka and Nepal.

 

“We are expanding where we are existing. But of course we are open to other nearby locations. We’ll definitely look at Maldives and the Middle East. Southeast Asia, we’ll definitely look at,” Chander K Baljee, chairman and managing director of Royal Orchid Hotels, told Business Standard.

 

The group is pushing its Regenta brand of hotels and resorts overseas, on similar lines as the Regenta resort and spa in Chitwan, near the Chitwan National Park, and Regenta Place in Sabrina.

 

Sarovar Hotels, founded in India in 1994, plans to further expand its international network.

 

“In Africa, the upcoming openings include a Sarovar Portico Kampala in Uganda with 85 rooms and Sarovar Premiere Hargesia in Somaliland with 121 Keys,” Ajay Bakaya, chairman, Sarovar Hotels and director, Louvre Hotels India, told Business Standard.

 

The company will develop these projects through management contracts to drive efficiency. 

 

In Nepal, it is set to open Royal Tulip Kathmandu, with 304 keys and a 22,000 sq. ft. convention centre this year, along with Royal Tulip Chitwan near the Chitwan National Park, and the Golden Tulip Bhairahawa, which will serve pilgrims visiting the nearby sacred city of Lumbini.

 

It has already launched Sarovar Portico in Birgunj.

 

“Nepal offers proximity to India, cultural and tourism synergy, and growing demand in both leisure and religious travel segments,” said Bakaya.

 

Meanwhile, increased economic activity in Africa is a good driver of growth for the chain. Sarovar has already launched The Heron Sarovar Portico in Nairobi with 108 keys.

 

“Cities like Nairobi, Kampala, and Hargeisa are experiencing increased business activity and urban development but continue to face a shortage of dependable mid-scale hotel options. Sarovar sees an opportunity to bridge this gap with its well-established, value-driven hospitality brands,” Bakaya added.

 

ITC Hotels, which operates six brands spanning various segments, including luxury, boutique premium, upscale and midscale, expanded operations to Sri Lanka in April last year.

 

ITC Ratnadipa, a mixed-use property with 352 keys, a retail space and residences, turned Ebitda positive from the December quarter.

 

The hospitality arm of the ITC group opened a 66-key Fortune branded resort and wellness spa in Nepal, also last year. 

New destinations

 

IHCL (Taj Hotels)

-  Enters South Africa with 3 luxury lodges in Kruger National Park

-  Plans to open 30 hotels in FY26, including a Taj in Frankfurt

 

Oberoi Hotels

-  London Mayfair property with 21 keys set to open in 2028

-  Expanding with 290 more international keys, including floating boat hotels and a Nile cruiser

 

Sarovar Hotels

-  Expanding in Africa: Kampala and Hargeisa

-  Nepal pipeline includes Royal Tulip Kathmandu, Chitwan, and Bhairahawa