Hilton Expands India Presence With 60 Hotels Under Construction, Plans 400 More Properties

As per a Business Standard news report, Hilton is looking to expand its hotel presence in India as part of its plans for the Asia-Pacific region.  

Alan Watts, President of Asia-Pacific at Hilton, said he expects India to become the world’s third-largest lodging market. Watts also described India as the most exciting travel and tourism market globally for the next decade.  

Hilton currently has 60 hotels in various stages of construction in the country, with commitments for another 400 properties through major partners. 

Focus on Tier-II and Tier-III Cities 

Hilton is also changing the type of properties it is adding in India. Alongside its presence in tier-I cities, the company is focusing more on mid-scale brands such as Hampton and Spark by Hilton. 

These brands are for domestic travellers in tier-II and tier-III cities. This comes as hotel development extends beyond India’s largest urban markets. 

Religious Tourism 

Pilgrimage destinations are another part of Hilton’s plans for India. Watts said locations such as Ayodhya and Tirupati attract large numbers of visitors but have little branded hotel supply. 

According to Watts, Indian real estate owners are financing hotel construction in these locations and approaching Hilton to manage the properties. The company has not been asked to commit funds from its balance sheet for these developments. 

China Weighs on Regional Performance 

Hilton’s India focus comes at a time when its wider Asia-Pacific business is seeing different trends across markets. Revenue per available room, or RevPAR, in the region rose by just over 1% in the second quarter. 

Watts said the regional performance was entirely related to China, where weak consumer confidence outside holiday periods has affected the market. At the same time, Hilton is seeing momentum in Southeast Asia and Japan. 

Intra-Asia Travel 

Travel within Asia remains an important source of hotel demand. Around eight out of every 10 room nights in the region are generated by travellers from within Asia, according to Watts. 

Hilton also sees opportunities across different price points as infrastructure investment, rising travel demand, expanding middle classes and improved connectivity support hotel activity across the region. 

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Conclusion 

India remains a key part of Hilton’s Asia-Pacific expansion, with its hotel pipeline extending across city tiers and pilgrimage destinations while the company continues to assess opportunities in other regional markets. 

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