The Taj group is busy studying this market, which experts say will be the fastest growing segment in the hospitality sector. Indian Hotels currently owns four brands in India—Taj, Vivanta by Taj, Gateway and Ginger and will add another brand, which will be between the Ginger (budget) and Gateway (upscale 3-star) – that will cater to the needs of the Rs 3,000-4,000 a day segment as per a report in Business Standard by Swaraj Baggonkar.

Raymond Bickson, managing director, Indian Hotels, says, “In between the economy and upscale, there is a mid-scale segment. There is a gap there. We are in the process of building a prototype for the new model”.

But the race is already hotting up for Bickson. Marriott International’s project targeting this segment is already in the works. The hotel chain will launch a customised version of its successful Fairfield Inn & Suites brand in India before the end of next year. However, with room prices of Rs 4,000- 5,000 per night, it is looking at the premium segment in this space.

David Townshend, senior VP, Global Sales, Marriott International, says, “While we are based in the US, most of our growth is occurring outside, mainly in China and India. The Fairfield brand will be serving a tier which is under-served in India. It won’t be a significant revenue driver but it will certainly be a major contributor. It will have full service restaurants, pools with 150 rooms”.

For the Indian venture, Marriot is creating a redesigned Fairfield Inn & Suites brand – a first for the group in any foreign market and calling it just Fairfield by Marriot. The new brand is being developed and promoted in association with SAMHI Hotels, a hotel and investment company based in New Delhi.

The US-based hotel chain, typically, lends its name and manages hotels and doesn’t own them. However, it has taken a 30 per cent stake in this joint venture. In the next four years, the joint venture plans to have15 hotels and 2,500 guest rooms in Bangalore, Chennai and Hyderabad.

The new line, which has been created after a year-long research and design, will have full-service restaurants, an expansive lobby and a meeting space. None of these exist in any of the Fairfield properties in the US. The charges will be at $80-$100 or Rs 4,000 - Rs 5,000 per night.

The Intercontinental Hotels Group, or IHG, the world’s largest hotel group by number of rooms, also has plans to open the first of its 19 Holiday Inn Express properties by the middle of next year.

After its break up with the Lalit Suri Group, IHG signed a 20-year management contract with Duet Hotels for the Holiday Inn Express brand (a mid-market brand) in April. This would add about 3,300 new rooms to its current inventory. The US-based company has picked up 24 per cent in the joint venture for $30 million.

IHG, IHC and Marriott are just three among half-a-dozen companies who are entering the fray. ITC’s Welcome Heritage and Accor’s Ibis brand have already entered this market. However, experts say that their limited presence and brand absence have failed to create a mark. Both are trying to expand their market presence.