Royal Orchid Hotels to Launch Over 50 New Properties in India
Quick Look
- Royal Orchid Hotels plans to open at least 50 new properties across India in the next 12-18 months, driven by a surge in domestic tourism due to geopolitical tensions and a weak rupee making international travel less appealing.
- The company aims to increase its room inventory significantly by 2027.
AI-generated summary
Why It Matters
Royal Orchid Hotels is expanding its presence in India, capitalizing on increased domestic tourism driven by global travel uncertainties. The company utilizes an asset-light model for rapid growth.
Royal Orchid Hotels is set to launch over 50 new properties across India in the coming 12 to 18 months. This expansion is fueled by a surge in domestic tourism as geopolitical tensions and currency fluctuations make international travel less appealing. The company aims to significantly increase its room inventory by 2027.
India's Royal Orchid Hotels plans to open at least 50 hotels in the next 12 to 18 months across the country, its founder said, as the company bets on geopolitical tensions driving more Indians to travel locally rather than abroad.
The Middle East conflict has curbed travel, with airlines raising fares and cutting capacity, while a weak rupee has made overseas trips costlier. Although a tentative U.S.-Iran agreement has eased tensions, the deal is short on details, keeping uncertainty high.
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Credit rating agency India Ratings and Research expects India's hotel demand and supply to grow 10% to 15% in the current financial year, it said in a note last week.
"A lot of people who were planning to go for holidays to the Middle East and other places cancelled their trips and boosted domestic tourism demand," Royal Orchid's founder and chairman, Chander Baljee, said in an interview, adding he remained optimistic about demand for the hospitality sector.
Live Events
Royal Orchid, which runs 120 hotels, aims to raise room inventory to about 11,000 from 8,000 by the end of 2027, Baljee said.
Religious tourism, business travel and large-scale events are emerging as key drivers, with consumers spending more on experiences and travel than before, Baljee added.
The Bengaluru-based mid-scale hospitality chain follows an asset-light model built on management contracts and franchising, allowing rapid expansion with minimal capital.
Also read: As live events boom, India's hotels ride the experience economy
It operates in more than 65 locations across metro cities, Tier‑2 and Tier‑3 towns, and leisure and pilgrimage destinations, as well as select markets such as Sri Lanka and Nepal.
The company is exploring expansion in those markets, though its immediate focus remains on India, he added.
What to Watch
AI outlook — possibilities, not facts
Royal Orchid Hotels to raise room inventory to 11,000 by end of 2027.
Likely · Within years
Open Questions
- Will geopolitical tensions persist?
- How will currency fluctuations affect future travel?
