After a good 2023, branded chains are now moving towards the mountains and spiritual centres. But, along with the tourists, they will have to be mindful of maintaining and preserving the ecosystem of these sensitive regions
In April, ITC Hotels added a property in Solan, Himachal Pradesh (HP), under its brand Storii—a collection of handpicked boutique properties.
Venturing beyond traditional hotspots, India's five-star hotel chains and renowned luxury brands are now setting their sights on offbeat gems like Katra, Kasauli, Kashmir, and other lesser-explored destinations.
With the strong revival of weddings and high-profile events such as the G20 summit and the ICC Men’s World Cup, 2023 proved to be exceptional for hoteliers. The year also marked a record number of brand signings. (See brand signings).
“The growth was not just quantitative but strategic, with a keen focus on expanding into smaller cities and underserved markets,” states the HVS ANAROCK India hospitality industry overview 2023, released in April 2024. It states that tier-3 and tier-4 cities, which offer more attractive investment opportunities with lower entry barriers and operational costs accounted for 52 percent of the total signings by property in 2023.
“With states providing incentives to hoteliers, private entrepreneurs took advantage of the situation," says PP Khanna, board member of the Federation of Associations in Indian Tourism and Hospitality (FAITH). "Additionally, looking at the prospects of tourism growth, and the demand for offbeat destinations, it was a good time to leverage the untapped potential in these markets,” he adds.