Hotels likely to wait before unlocking West Asia biz expansion door

Indian hotel companies exploring growth opportunities in West Asia are adopting a wait-and-watch stance as the sudden conflict in the region injects uncertainty into long-term expansion plans

Indian hotel chains looking to expand internationally are taking a cautious stance on including West Asia in their plans, following the sudden onset of conflict in the region. Unlike previous crises, where travel hubs such as Dubai and Abu Dhabi were largely unaffected, recent events over the weekend are prompting companies to rethink their strategies.

 

“We are currently focused on our India-first strategy. While we are open to exploring international markets, we will adopt a wait-and-watch approach for now,” said Arjun Baljee, president of Royal Orchid Hotels and founder of the ICONIQA brand. The Bengaluru-headquartered, publicly listed hotel chain had previously explored international locations, including West Asia, as part of its plans to expand its overseas presence in Sri Lanka and Nepal.

 

A senior industry executive said that, given the long gestation period for hotel development — especially greenfield projects, which typically take three to four years and even longer for ultra-luxury properties — companies can afford to slow down expansion plans and wait out the current uncertainty in West Asia.

 

West Asia remains a top draw for Indian travellers and outbound tourists, as well as a global hub for aviation and transit travel to Europe and the US. In 2025, the United Arab Emirates (UAE) and Saudi Arabia were the top two outbound markets for Indian travellers, accounting for 36.6 per cent of the total 32.7 million Indians travelling abroad that year, according to Ministry of Tourism data. 

 

Around 8.6 million visited the UAE, and 3.4 million travelled to Saudi Arabia. The region also hosts a sizeable Indian diaspora, with more than 9 million Indians living across Gulf Cooperation Council countries, including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain, according to the Ministry of External Affairs.

 

Indian hotel chains are therefore seeking to capture a larger share of both the Indian diaspora and global travellers. However, with ongoing military strikes by the US and Israel inside Iran, volatility in the region may continue. Companies are hopeful for a swift resolution.

 

Several Indian hotel chains already have considerable exposure in West Asia. Indian Hotels Company, the country’s largest hotel group and owner of the iconic Taj Hotels brand — the only international expansion brand operated by Tata Group — has nearly 10 properties in the pipeline in the region. The company, which currently operates three hotels in Dubai, plans to open two luxury hotels in Bahrain within three years and two more in Saudi Arabia over the next three to four years.

 

Meanwhile, luxury hotel chain The Leela Palaces, Hotels and Resorts, listed on the BSE in 2025, announced its global debut last year with the acquisition of a 25 per cent stake in a luxury beachfront resort at Palm Jumeirah, Dubai.

 

“Dubai, we closed the transaction on November 26. The current operator will manage the hotel until December 2026. We have a planned upgrade in 2027 and will start operating the hotel from that year. We aim to rebrand it as The Leela in 2028 and begin earning management fees,” said Anuraag Bhatnagar, whole-time director and chief executive officer of The Leela Palaces Hotels & Resorts, during an investor call after announcing the company’s October-December quarter results.