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InterContinental Hotels Group (IHG) will focus on its mid-scale brands that offer growth opportunities.
Mid-market brands Holiday Inn and Holiday Inn Express are fast growing, and the majority of the group’s upcoming hotel properties in India fall in the same category.
“About 50 per cent of our operating portfolio is in Holiday Inn and Holiday Inn Express. Also, about 90 per cent of our pipeline (36 hotels) are in those two brands. With rapid growth of mid-market, the two brands are well positioned to grow and take advantage of the opportunities,” Shantha de Silva, Head of South-West Asia, IHG, told BusinessLine at Holiday Inn Chennai OMR IT Express Way, which recently commenced operations.
Generally, three- and four-star categories come under the mid-market segment, with rooms priced below $100.
IHG has 30 operating hotels across four brands, including the InterContinental and Crowne Plaza. With its pipeline of hotels, India becomes the third-most important growth market for the group, after the US and China.
“Across India, we have seen the occupancy level stabilising, and it touched about 60 per cent after five years, which is a great sign,” he added.
Analysts have projected room revenue to grow 8-9 per cent this year mainly due to stronger domestic demand and stabilisation of supply and demand.
The new 202-room Holiday Inn at Taramani here is jointly promoted by Chennai-based SRP Tools and Bengaluru-based Brigade Group and is managed by IHG. It joins IHG’s other operating hotels — InterContinental Mahabalipuram, Crowne Plaza Adyar Park and Holiday Inn Express hotels at OMR and Mahindra World City — in Chennai.
Chennai has become first Indian city to host all four brands of IHG.
“Our hotel will cater to businessmen, leisure travellers and families. We are also a kid-friendly hotel and have some special programmes for kids,” said Shipra Sumbly Kaul, General Manager, Holiday Inn Chennai OMR IT Express Way.
The hotel offers rooms under four categories with tariff ranging ₹5,500-12,000.
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