“The partnership accelerates Hilton’s upper mid-scale expansion in India, where rising domestic travel and growing demand from the country’s expanding middle class are driving strong opportunities in the mid-market segment,” the company stated in a release.
The franchised hotels will primarily be developed across western and southern markets, including Goa, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana and are expected to be opened by 2035.
“India’s economic growth, expanding middle class and rapid infrastructure development are reshaping the country’s travel landscape, creating significant opportunities for our brands,” said Alan Watts, president, Asia Pacific at Hilton.
For Royal Orchid Hotels, the focus remains on strengthening both the Regenta portfolio and its association with Hampton by Hilton.
“We anticipate a healthy mix of greenfield developments and conversions as we scale this partnership, with approximately 60 per cent of the portfolio expected to be greenfield and 40 per cent through conversions. This balanced approach allows us to expand efficiently while tapping into existing assets across key markets,” Keshav Baljee, executive director at Royal Orchid Group told Business Standard.
“Our new strategic partnership with the Royal Orchid Hotels demonstrates our commitment to working with established local operators, enabling us to scale our franchise footprint rapidly while maintaining the strength and consistency of Hilton’s brands,” added Watts.
This comes after Hilton’s announcement last year, signing a strategic licensing agreement (SLA) with hotel management firm Nile Hospitality to bring 75 Hamilton brand hotels to India.
The move points to a growing trend of expansion in the mid-scale segment. Several international and home-based mid-scale hotels like Ginger by Indian Hotels are charting expansion strategies on the back of sustained momentum in the Indian travel and tourism sector coupled with an expanding middle class and rising discretionary incomes.
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