London-based hospitality major InterContinental Hotels Group (IHG) has drawn up big plans for India with increased focus on the mid-scale segment. As per a report in FE, the global chain is targeting to have 150 hotels in the country across its four brands by 2020. As a first step, it is gearing up to open 46 properties in the country over a period of five years.
Subsequently, IHG has signed a joint venture deal with Duet India Hotels Group to develop 19 new Holiday Inn Express hotels across India. IHG will pick a 24% equity stake in the JV, making a multi-year investment of $30 million. The 19 Holiday Inn Express hotels will add around 3,300 rooms to IHG's current India development pipeline of over 10,000 rooms (46 hotels), said Chris Moloney, chief operating officer, IHG, South West Asia.
In an exclusive interaction with FE, Moloney said, "India is a key market for the group and the growing middle class segment augers well for the group's strategy. We will be extensively tapping the mid-scale segment opening many more hotels in tier-II and tier III cities. And our Holiday Inn family brands will not only cater to business travellers, but also leisure and religious travellers." IHG is driving its growth in India through four brands such as InterContinental (upscale luxury hotel brand), Crowne Plaza (upscale business hotel brand), Holiday Inn mid-scale brand) and Holiday Inn Express (focused mid-scale service brand).
"In India, IHG has a development pipeline of 46 new hotels to be opened in the next couple of years across primary and secondary cities. IHG currently operates 14 hotels in key cities and is on track to develop 150 hotels by 2020 in key business and leisure hubs. The 19 Holiday Inn Express hotels, which IHG is planning to develop across India in partnership with Duet India Hotels Group, are expected to be operational by 2016. Close to 70% of IHG's India pipeline is with the Holiday Inn brand. The first hotel in Holiday Inn Express category is expected to go on stream by mid-2012," he said.
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