IHG bets on branded residences as India’s luxury housing demand grows; targets Tier 1 cities and resort destinations

IHG aims to more than triple its India portfolio to 400+ open and in-development hotels in 5 years, driven by local partnerships across Tier 1 to Tier 4 cities

Global hospitality major IHG sees India as one of its most ‘compelling’ long-term growth markets and is actively evaluating opportunities in branded residences. The company is in discussions with select real estate developers to explore branded residences as part of luxury projects, with a focus on major Tier 1 cities and high-potential resort destinations, Sudeep Jain, Managing Director, South West Asia, told Hindustan Times Real Estate.

IHG is in discussions with select real estate developers in India to explore branded residences as part of luxury projects, with a focus on major Tier 1 cities, Sudeep Jain, Managing Director, South West Asia told HT Real Estate.

Asked if IHG is planning new hotel launches in Ahmedabad, especially with the Commonwealth Games 2030 in focus, he said that the company is evaluating new development opportunities in the city that align with long-term demand drivers rather than focusing solely on any single event.

Branded residences

Jain said that IHG is in active discussions with select real estate developers to explore branded residences as part of luxury projects in India. “Our focus is on major Tier 1 cities and high-potential resort destinations, where we see a growing demand for luxury branded living backed by hospitality expertise. As always, timelines will be guided by finding the right partners and right locations, he said.

Hotel launches in Ahmedabad

Jain said that Ahmedabad remains a strategically important market for the company, driven by strong business travel demand, growing infrastructure, and rising event-led travel. "We are actively evaluating new development opportunities in the city that align with long-term demand drivers rather than focusing solely on any single event," he told HT Real Estate.

“This includes our recent signing of a new Holiday Inn Ahmedabad, a 150-key property slated to open in 2029 and will further strengthen our presence in the region,” he said.

IHG targets more than 400 hotels in India over the next five years

“Our ambition is to have over 400 open and in-development hotels in India within five years. This represents more than a tripling of our current estate and reflects the strong momentum we are seeing in this key growth market. With over 50 hotels operating and a further 80 already in development, this growth is backed by robust owner confidence in our diverse brand portfolio,” he told HT Real Estate.

“This will make the country one of IHG’s most significant global growth markets,” he said.

Key reasons behind IHG’s renewed expansion focus on India

Jain said that today, India represents one of the most ‘compelling long-term growth opportunities’ for IHG globally. The market is driven by strong domestic demand, improving infrastructure, and a rising preference for branded hospitality.

“We also bring the right platform: a highly investible model, deep relationships with our owners, and the right products for every segment. With substantial headroom for growth still ahead, we are focused on expanding in a disciplined and sustainable way, building on the foundation we’ve established over many years in India,” he said.

India's growth anchored in partnerships with Indian owners, to span Tier 1, 2, 3 and 4 cities

“Growth in India is anchored in strong partnerships with Indian owners and developers. Our expansion will span Tier 1, 2, 3 and emerging Tier 4 cities, deploying the right brands in the right locations, aligned to local demand drivers and travel patterns,” Jain said.

IHG’s collection brand Vignette set to debut in Panchkula in 2026

Jain said the immediate focus is the debut of IHG’s collection brand, Vignette Collection, early this year with The Aarlis Hotel Panchkula, Vignette Collection, which will be a key addition to the company’s luxury and lifestyle portfolio in India.

“Beyond that, we are actively exploring opportunities for other luxury and lifestyle brands across our portfolio. The introduction of additional brands will be guided by market readiness and the right strategic partnerships,” he said.

The company’s lifestyle brand, Kimpton, has also become increasingly relevant in India over time. "Introduction of Kimpton will be measured and deliberate, and will only occur in the right cities and with the right partners. At this stage, it remains a future opportunity rather than an immediate launch.”

Expansion in Tier 2 and Tier 3 cities

Jain said that Tier 2 and Tier 3 cities are a key part of the company’s India growth story. “Our midscale brands, including Holiday Inn, Holiday Inn Express and the newly introduced Garner, are particularly well-suited to these markets. These brands allow us to serve domestic business, leisure, business and transit demand, while maintaining strong brand standards and owner returns,” he added.