Choice Hotels looks to launch 11 new hotels in India via franchise model

Choice Hotels India is planning to add 11 new hotels in India in 2020. The company, which is a wholly-owned subsidiary of the US-based hospitality company Choice Hotels International, will launch new hotels under the franchise model.

Vilas Pawar, CEO of Choice Hotels India, said, “Currently, we have 32 operating hotels in India spread across the country. In 2020, we are looking at opening 11 new properties, mainly in tier II and III cities, taking the total to 43.”

The new hotels will be introduced in cities like Gurugram, Lucknow, Dehradun, Indore, Bengaluru, Kochi, Abu Road, Dalhousie, Khanvel, Lakhimpur, and Rishikesh.

The upcoming hotels will be unveiled under Comfort Inn, Quality Inn and Clarion brands as the company is mainly present in the mid-scale segments in the country.

“Most of our new properties will mainly be in tier II and III cities as they are a fast-growing markets. As we follow the franchise model we don't invest in the property. We invest in our distribution platforms, in our systems that deliver values and in training. Going forward we see great opportunities in India and we see great opportunities in the mid-scale segment,” Pawar further stated.

Choice Hotels International, an international global lodging franchisor, has more than 7,000 hotels representing over 5,00,000 rooms in 35+ countries and territories.

Brands operated by Choice Hotels India

Choice Hotels is operating mainly under three brands in India. These include Comfort (three-star), Quality (four-star) and Clarion (basic five-star).

In India, the company also has The Ascend Hotel Collection brand, offering upscale boutique and historic hotels.

Pawar added, “At this point, we would like to consolidate the existing brands and strengthen their presence. I don't think the market is mature enough for expanding with new brands. However, the market scenario may change in 1-2 years and we may think about introducing some new brand in India.”

Indian Hotel Industry

The Indian hotel industry is estimated to grow at a Compounded Annual Growth Rate (CAGR) of 15% over the next five years.

India ranks 18th in business travel, as per the World Travel and Tourism Council. In India, the success rate of the hotel industry is the second-highest in the world after China.

The hotel industry is set to grow by 15% every year. The demand for hotel rooms has been increased due to the boom of information technology, telecom, retail, and real estate. The country’s increasing stock market and new business opportunities are attracting foreign investors. Hence, there is a tremendous scope of growth for hotel brands in the country.