BWH Hotels is expanding in India with 21 new properties, focusing on secondary markets to boost India’s hospitality sector and enhance guest experiences.

BWH Hotels Expands in India with 21 New Properties, Targets Secondary Markets for Growth

BWH Hotels, the mid-scale hospitality group behind brands such as Best Western Hotels & Resorts and SureStay Hotels, is significantly increasing its presence in India. With a strategic plan to open 21 new properties over the next two years, the company is shifting its approach to focus exclusively on new construction projects. This move is aimed at strengthening brand perception and enhancing guest experiences, BWH Hotels’ global president and CEO.

The company currently operates 32 hotels across India, Bangladesh, and Sri Lanka, a growth that has been supported by its collaboration with Delhi-based Sorrel Hospitality Pvt. Ltd. Since joining forces in 2016—when it had only seven hotels in India—BWH Hotels has expanded steadily, despite relatively slow growth in the region over the past decade.

Expanding in Secondary Markets with Business Travel in Focus

Looking ahead, BWH Hotels is targeting India’s secondary markets, driven by enhanced infrastructure and the rising demand for event-based travel, particularly weddings. While leisure travel has played a significant role in the post-pandemic tourism recovery, Cuculic anticipates that corporate travel will be a major factor in the company’s long-term growth strategy in the country.

Currently, BWH Hotels has signed agreements for 54 properties and secured five additional memorandums of understanding (MOUs) with potential owners. With this pipeline, the company aims to expand its portfolio to 100 hotels within the next five to seven years.

In the short term, the company will be adding five more properties to its current 28 operational hotels in India this year, with further openings planned in subsequent years. Collectively, these hotels generate an estimated ₹250 crore in revenue. Additionally, BWH Hotels is preparing to introduce its Aiden brand in Amritsar, marking another milestone in its Indian expansion.

Supply Struggles to Match Surging Demand

India’s hospitality sector is experiencing a supply-demand gap, with accommodation demand surpassing the rate of new hotel developments. Cuculic expects this trend to continue, which could further drive up occupancy rates and pricing for existing hotels.

The growing interest from global hospitality leaders in India’s booming market is evident. Recent visits from industry executives, including Wyndham Hotels’ CEO Geoffrey A. Ballotti and Marriott International’s President and CEO Anthony Capuano, highlight the country’s increasing prominence as a key growth destination. The Indian government’s emphasis on infrastructure, such as improved highways and transportation networks, is accelerating development opportunities, particularly in underrepresented regions.

Industry projections suggest that India’s branded hotel inventory, which currently stands at around 200,000 rooms, is expected to grow by an additional 100,000 rooms by 2029. This expansion underscores the potential for international hotel chains to capitalize on the country’s evolving accommodation needs.

Adapting to India’s Full-Service Market

BWH Hotels’ strategy in India diverges from its approach in the United States, where it primarily operates limited-service hotels. Recognizing the preferences of Indian travelers, the company ensures that even its mid-market hotels offer full-service amenities, such as dining options, banquet spaces, and meeting facilities.

“Our U.S. hotels typically follow a limited-service model, but in India, full-service offerings are essential. Weddings and events are major revenue drivers here, so we’ve tailored our properties to meet local market demands,” Cuculic explained.

As part of its broader expansion strategy, BWH Hotels aims to increase its global footprint from its current 4,300 hotels to 5,150 within the next five years. This ambitious target will require substantial growth across its 18 brands, which include both established names like Best Western and Best Western Plus, as well as emerging boutique and luxury concepts.

The company is also strengthening its management operations in key international markets. While BWH Hotels does not directly manage properties in North America, nearly half of its Indian portfolio operates under management contracts. This means that BWH Hotels oversees the day-to-day operations of these properties, distinguishing them from franchised hotels, which are owned by independent operators who adhere to brand standards but manage their properties independently.

With a strong development pipeline, a focus on secondary cities, and a commitment to offering full-service experiences, BWH Hotels is well-positioned to capitalize on India’s evolving hospitality landscape in the years to come.

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