Hilton, a global hospitality leader with over 6,800 hotels, plans to triple its presence in India within 5-7 years. Currently operating 24 hotels across five brands, Hilton aims to expand to 75-100 hotels in top Indian markets. The strategy includes introducing the Curio Collection and Waldorf Astoria brands. A strong focus on food and beverage (F&B) aims to boost F&B revenue from 35% to 45%, targeting the INR 5 trillion wedding and conference market. Expansion into tier-2 and tier-3 cities is also planned, leveraging rising disposable incomes. This ambitious growth requires significant investment, emphasizing Hilton's confidence in India's hospitality sector.
Hilton, a global hospitality leader with over 6,800 hotels worldwide, is making a significant investment in India. Zubin Saxena, Senior Vice President and Country Head for Hilton, revealed ambitious plans to triple their presence in India over the next 5-7 years.
Hilton currently operates 24 hotels across five brands in India, including Hilton Hotels & Resorts, DoubleTree by Hilton, Hampton by Hilton, Hilton Garden Inn, and Conrad Hotels & Resorts. Saxena outlined a focus on expanding their portfolio to 75-100 hotels in the top 10 Indian markets - cities with populations exceeding 1 million. This aggressive plan includes both operational hotels and those under development.
The expansion strategy goes beyond just quantity. Hilton plans to introduce two new brands to the Indian market: Curio Collection, a portfolio of unique and culturally distinct hotels, and the ultra-luxurious Waldorf Astoria, known for its exceptional service and iconic properties like the Waldorf Astoria New York. This wider range of brands caters to a broader spectrum of travellers, offering options from budget-friendly focused service (average stay costing around INR 5,000-INR 7,000 per night) to high-end experiences for discerning guests (average stay exceeding INR 20,000 per night).
Recognizing the importance of food and beverage (F&B) in India's hospitality sector, Hilton is placing a strong emphasis on this area. Their goal is to increase F&B revenue from 35% to 45% of their overall income in India. This growth will be driven by innovative and efficient catering solutions, particularly for the booming wedding and conference market, estimated to be worth over INR 5 trillion annually in India.
Saxena highlights that F&B goes beyond just hotel restaurants. He sees significant potential in tier-2 and tier-3 cities (populations between 100,000 and 1 million and below 100,000 respectively). With rising disposable incomes, these cities are experiencing a growing demand for a comprehensive range of food and beverage services, including event catering. Hilton aims to fill this gap by offering these services in these developing markets.
Hilton's expansion plans extend beyond the major metropolises. Tier-2 and tier-3 cities like Pune (population 3.1 million), Lucknow (population 3.6 million), and Coimbatore (population 2.1 million) are experiencing rapid economic growth, and this translates to a growing demand for quality hospitality options. By offering a diverse range of brands with varying price points and a focus on F&B solutions, Hilton is well-positioned to capitalize on this expanding market.
Hilton's ambitious plans require significant investment. The company is actively signing deals for new hotels and expanding their existing properties. This commitment to growth underscores their confidence in the long-term potential of the Indian hospitality sector, expected to reach over 200,000 rooms by 2025.
Hilton's expansion plans are good news for both travellers and investors. Travelers will benefit from a wider range of hotel options catering to various budgets and preferences. Investors, meanwhile, can participate in the growth of the Indian hospitality sector with a well-established global brand like Hilton.
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