East Asian hotel chains ramp up India market expansion plans

Targeting luxury and mid segments, companies to chip at US, European brands' market share

East Asian hotel brands are sharpening their focus on India, exploring possible partnerships for quality-driven expansion into major metro cities and leisure destinations, besides the prominent Tier-II and -III cities.  From a few existing properties, Minor Hotels, Dusit International, Atmosphere Core, Banyan Tree, among other Japanese and Thai-based hotels, intend to take share from American and European hotel chains in India. 

Tokyo-headquartered Seibu Prince Hotels and Resorts, which is currently present in Jaipur and Goa, sees India as a critically important market for achieving its vision to expand its global footprint to 250 hotels by 2035, with 150 of those properties outside of Japan. 

“Our expansion will be concentrated in major commercial and cultural hubs. Consistent with our global strategy, we are targeting growth in key metropolitan areas such as Mumbai and Delhi, as well as other high-potential locations that align with our luxury and upscale brand positioning,” said Lee Richards, chief executive officer, international division, Seibu Prince Hotels and Resorts. The firm’s strategy is to pursue “quality-driven hotel development” with a clear focus on the luxury and upscale segments, he added.

 

Its decision to expand in India stemmed from the exponential growth it saw in Indian travellers across its international portfolio, with a 40 per cent year-on-year growth across Japan properties alone.

 

“We are primarily focused on growth through management contracts and, where strategically appropriate, joint ventures and partnerships with local developers who share our commitment to quality and service excellence. This approach allows us to combine our global brand expertise with valuable local market knowledge,” Richard added. 

Bangkok-headquartered Minor Hotels, which currently has one operational property in Jaipur, aims to develop 50 properties in India over the next decade, following an asset-light model anchored in partnerships over properties. 

“Minor Hotels is in discussions with hotel asset management firms as part of our asset-light model. These collaborations will support our pipeline and strengthen market entry across diverse locations,” said Nicholas Smith, vice president of operations for Asia, Minor Hotels. The company’s growth will span luxury, premium and select segments, with brands such as Anantara, Avani and NH Collection positioned to meet rising demand for experiential luxury, wellness retreats and lifestyle-led stays, he said.

 

Recently, Ventive Hospitality, a hotel asset management firm, had told Business Standard that Minor Hotels’ Anantara brand had approached the company for possible collaboration in the Indian market. Currently, it has a partnership with Minor Hotels for a hotel property in the Maldives. 

Anantara Jewel Bagh Jaipur, which opened in late 2024, was the first property to open as part of its expansion plans, and in April, it announced the first Avani-branded property — Avani+ Sunray Beach Visakhapatnam Resort, slated to open in 2028. 

Dusit International, among the leading local players in Thailand, will add six additional hotels across India, after opening its first in Shimla in 2024, and signing three key properties in Karnataka. Singapore-based hotel chain Ascott, a wholly owned subsidiary of CapitaLand Investment, is aiming to double its portfolio in India to 12,000 rooms by 2028, from 5,500 rooms at the end of 2024. 

In comparison, US and European brands have had a headstart in India.

 

US-based Marriott International launched a new hotel brand in the country with plans to be in over 90 cities. Its home-base rival Hilton Hotels has announced the signing of 75 Hampton by Hilton (an upper midscale hotel) with NILE Hospitality. It also has a strategic licensing agreement with Olive by Embassy to open 150 Spark by Hilton hotels across India. Brussels-based Radisson Hotels has expanded to 200 hotels in India and aims to have 500 hotels by 2030, while French hospitality major Accor Hotels, in partnership with InterGlobe, is aiming for 300 hotels in India by 2030.

 

“There’s no doubt that some international hospitality groups are currently playing catch-up in the Indian market. However, many of them have recognised the strategic importance of India and are now making concentrated efforts to establish or expand their presence here,” said Nandivardhan Jain, chief executive office, Noesis Capital Advisors, a hotel transaction advisory and consulting firm. 

“Banyan Tree is actively exploring opportunities and remains open to evaluating the Indian landscape. Ascott, through its Oakwood brand and other offerings, is already present and is working diligently to scale further,” Jain said. The firm is already facilitating several partnerships across the country, he added. 

Deepak Jain, managing director, MayFair Consultants, a hotel consultancy firm, emphasised that new hotel developers and owners in the industry are eager to pursue new brand partnerships for their properties, as it provides a renewed sense of vitality to the development and hotel projects in the country.