Mid-sized hotels on aggressive expansion drive as occupancy, rates zoom

Established mid-sized hotel chains have embarked on an aggressive plan to sign up un­branded, standalone hotels at a rapid pace. This comes because of a major turnaround in the segment’s performance across the country, in terms of occupancy and average daily rates.

An estimated 15,000 rooms are expected to be added in the mid-sized hotel segment this financial year, according to Noesis Capital & Advisors. With the owners of standalone hotels having struggled during the pandemic, a large part of the expansion is being driven by conversion.

Non-branded, standalone hotels are choosing to become a part of an established hotel chain as the latter helps them in better distribution and improved service quality. Branded mid-sized hotels are better positioned to benefit from