Hilton to Expand in India

By Aishwarya Jain

BENGALURU (Reuters) – Hilton Worldwide (NYSE:HLT) aims to quadruple its hotel room count in India over the next five years to better compete in a thriving domestic travel market.

Currently, Hilton operates 32 hotels in India, compared to InterContinental's 45, Hyatt's 50, and Marriott's 150.

In response to strong domestic travel demand post-pandemic, hotel operators are developing diverse portfolios, focusing on midsize properties for middle-income consumers.

On Monday, Hilton signed a licensing agreement with India’s Embassy Group to open 150 Spark brand hotels in the country.

For the last decade, Hilton’s strategy prioritized launching brands in China before other Asian markets. Alan Watts, president of Hilton's Asia Pacific (APAC) business, noted that Spark is the first brand launched with an India-first approach, reflecting India's market potential amid a fluctuating Chinese environment.

Hilton CEO Christopher Nasseta mentioned a shift in APAC strategy towards countries outside China, as third-quarter room revenue in China fell by 9% due to decreased discretionary spending by consumers amid economic challenges.

Jaideep Dang, managing director at JLL's hotels and hospitality group in India, stated that the robust domestic travel industry is drawing foreign hospitality investors. JLL projects hotel industry real estate investments in India to reach $413 million by the end of 2024, a 22% increase from last year.