India’s Mid-Scale Hotel Brands Set for Global Expansion by 2030, ETTravelWorld

India’s mid-scale hotel market is entering a phase of accelerated growth and structural transformation, according to a new white paper released by Hotelogix, a global provider of cloud-based hospitality solutions. The report, titled “India’s Thriving Domestic Mid-Scale Hotel Brands – Redefining the Industry with Consolidation and Collaboration, International Expansion, and Technology Adoption”, outlines the trends reshaping the country’s most dynamic hospitality segment.

Accounting for about 60 per cent of India’s total branded hotel rooms, the mid-scale segment continues to expand at a compound annual growth rate of 13 per cent , fuelled by rapid urbanisation, improved connectivity, and increased domestic leisure and business travel.

“India’s mid-scale hotel brands are leveraging local insights and agile business models to capture new demand in emerging cities,” said Aditya Sanghi, CEO of Hotelogix. “The segment’s value is projected to rise from around USD 3.75 billion in 2023 to USD 6.3 billion by 2030, driven by consolidation, brand expansion, and technology integration.”

Consolidation and Collaboration

The report finds that by 2030, large domestic and international hotel chains will control 75 per cent –80 per cent of branded mid-scale rooms through mergers, acquisitions and franchise partnerships. This wave of consolidation will enable stronger brand portfolios and operational efficiencies.

“Consolidation will gather pace. More Indian mid-segment brands will sign up with large domestic and global chains. It will help both stakeholders stay relevant in this competitive industry,” said Aryavir Kumar, Managing Director, The Clarks Hotels & Resorts.

Global Expansion

India’s mid-scale hotel brands are also extending their footprint abroad. Since 2020, 15–20 Indian brands have ventured into destinations such as the UAE, Nepal, and East Africa, with many adopting franchise or management models. The report predicts that 30 per cent of mid-scale brands will expand overseas by 2030, tapping into the growing outbound Indian traveller base.

“By 2030, about 30 per cent of India’s mid-scale hotel brands will cross borders, transforming themselves into global ambassadors of authentic Indian hospitality,” said Anant Apurv Kumar, Founder, Brij Hotels.

Technology Adoption

The report identifies a major shift toward digital transformation, with nearly one in three multi-property mid-scale brands already adopting cloud-based systems. By 2030, this figure is expected to reach 60 per cent –70 per cent , enabling centralised management, scalability and data-driven decision-making.

“Affordable, modern made-in-India cloud solutions now enable small brands like ours to digitise operations, making technology adoption much more accessible than before,” said Jaideep Ahuja, Managing Director & CEO, Ahuja Residency.

IPO Momentum

Currently, around 5 per cent of Indian mid-scale hotel brands are publicly listed, including Royal Orchid Hotels Ltd, Suba Group of Hotels, Grand Continent Hotels Ltd, and Lemon Tree Hotels. The white paper anticipates 6 per cent –8 per cent of additional brands will pursue Initial Public Offerings (IPOs) by 2028, reflecting growing investor confidence in the sector.

“Hospitality is buoyant across segments, and it will continue to attract capital. Growth-focused brands with asset-light models will remain attractive to investors,” said Arjun Baljee, President, Royal Orchid Hotels Ltd.

The findings position India’s mid-scale hotel segment as a critical growth engine for the wider hospitality sector—marked by consolidation, digital transformation, global expansion, and stronger capital markets participation.>