Hilton Expands Mid-Scale Hotel Footprint Across India
Hilton is pivoting toward mid-scale brands in India to target domestic travelers and religious pilgrimage sites as growth slows in China.
Hilton is aggressively expanding its presence in India, which the company identifies as the most exciting global market for travel and tourism. The company is pivoting from flagship properties in tier-one cities toward mid-scale brands, such as Hampton and Spark by Hilton, to target domestic travelers in tier-two and tier-three cities. This strategy includes expanding into underserved religious pilgrimage sites like Ayodhya and Tirupati.
Hilton currently has 60 hotels under construction in India and commitments for 400 more, with funding provided largely by local real estate owners. Alan Watts, the company's president of Asia Pacific, predicts India will become the world's third-largest lodging market over the next decade.
This strategic shift occurs as Hilton faces headwinds in China, where low consumer confidence has limited regional revenue growth. Despite the challenges in China, the company reports that intra-Asia travel remains a strong driver of resilience across the broader Asia-Pacific region.