Royal Orchid Hotels plans to open at least 50 new hotels in India within 12 to 18 months. The expansion is driven by an anticipated surge in domestic tourism, fueled by geopolitical tensions and a weaker rupee making international travel more expensive.
The expansion plans of Royal Orchid Hotels signal confidence in India's domestic tourism sector, potentially creating jobs and boosting regional economies. It also highlights a strategic shift in travel patterns influenced by global events and currency fluctuations.
Royal Orchid Hotels, a mid-scale hospitality chain in India, has announced plans to significantly expand its footprint by opening at least 50 new hotels over the next 12 to 18 months. This expansion strategy is underpinned by a belief that geopolitical tensions and a weaker rupee will continue to drive domestic tourism, as more Indians opt for local travel over international destinations.
Founder and chairman Chander Baljee stated that the company is optimistic about the hospitality sector's demand, noting that recent global events have led many to cancel overseas trips in favor of domestic holidays. This trend is expected to bolster the demand for hotels within India.
India Ratings and Research forecasts a 10% to 15% growth in both hotel demand and supply for the current financial year. Royal Orchid aims to capitalize on this by increasing its room inventory to approximately 11,000 from its current 8,000 by the end of 2027.
The company employs an asset-light business model, relying on management contracts and franchising, which facilitates rapid expansion with minimal capital investment. Royal Orchid currently operates in over 65 locations across India, including major metropolitan areas, Tier-2 and Tier-3 cities, and leisure and pilgrimage destinations. The company is also exploring opportunities in international markets like Sri Lanka and Nepal, though its primary focus remains on domestic growth.