HG in India: Key Highlights on Branded Residences and Luxury Hospitality Expansion

Branded Residences Focus

The InterContinental Hotels Group (IHG) is keenly pursuing partnerships with Indian real estate developers to introduce branded residences in India’s Tier 1 cities and high-potential resort destinations. As luxury living becomes increasingly sought after by affluent buyers, IHG is strategically positioning itself in this lucrative market. The demand for branded living is coupled with a desire for top-notch hospitality, making this move a logical extension for IHG’s premium portfolio.

Expansion Ambitions

IHG’s ambition is robust; the company plans to expand its India portfolio to more than 400 hotels within the next five years. Currently, IHG operates over 50 hotels throughout India, with an impressive 80 projects already in the pipeline. This rapid growth trajectory underscores the strong market momentum and emphasizes India’s potential as a significant player in the global hospitality landscape.

Strategic City Growth

Ahmedabad stands out as a strategic market for IHG, driven by business travel, ongoing infrastructure development, and event-driven demand. The company has outlined plans for a new 150-key Holiday Inn in Ahmedabad, set to open in 2029. This initiative highlights IHG’s commitment to capturing growth opportunities in cities where demand metrics are favorable.

Tier 2 & Tier 3 Focus

In addition to its focus on major cities, IHG is also targeting emerging Tier 2 and Tier 3 cities. Midscale brands such as Holiday Inn Express and Garner are spearheading this expansion, aiming to cater to domestic business travelers as well as leisure and transit demand. The emphasis remains on providing robust returns for hotel owners while ensuring consistent brand standards across locations.

Luxury & Lifestyle Footprint

The Indian hospitality market is on the brink of significant luxury expansion, with IHG entering the luxury segment through the Vignette Collection, set to debut with The Aarlis Hotel Panchkula in 2026. Additionally, the company is evaluating the introduction of its lifestyle brand, Kimpton. However, Sudeep Jain, Managing Director of IHG South West Asia, stressed that such expansions would be methodical, prioritizing select cities and partnerships.

Why Focus on Branded Residences?

Branded residences, which combine high-quality architecture with hotel-like services and top-tier property management, have gained traction among India’s Ultra High Net Worth Individuals (UHNWIs) and Non-Resident Indians (NRIs). These properties not only offer a luxurious lifestyle but also serve as solid investment opportunities. The entry of IHG into this segment aligns with a broader trend, where international luxury brands increasingly partner with Indian developers to meet the rising demands of discerning buyers.

Global Standing of Indian Branded Residences

India ranks sixth globally in live branded residence projects, accounting for 4% of the global supply, according to Knight Frank India’s The Residence Report 2025. This impressive position highlights cities like Mumbai, Delhi-NCR, Bengaluru, and Pune as the leading hubs for premium residential development. Additionally, with nearly 85,698 High-Net-Worth Individuals (HNIs) in 2024, holding assets exceeding $10 million, the domestic market for branded residences appears robust and ripe for growth.

Ahmedabad as a Pillar of Growth

Ahmedabad’s ongoing development plans are engineered around long-term demand fundamentals, not merely opportunistic events like the Commonwealth Games 2030. Jain emphasized that business travel, infrastructural improvements, and event-driven travel are key factors driving IHG’s future plans in the region. The anticipated Holiday Inn opening adds yet another layer to IHG’s growing footprint in Gujarat.

Importance of Tier 2 & Tier 3 Cities

These emerging cities are deemed critical for IHG’s growth strategy. The focus is on utilizing midscale brands to cater to everyday travelers while ensuring that brand standards are maintained. Jain noted that these brands collectively meet a diverse range of demands—business, leisure, and transit—while offering strong returns for hotel owners, thereby ensuring a sustainable model for growth.

Luxury and Lifestyle Momentum

IHG’s Vignette Collection is poised not just to elevate their luxury offerings, but also to bolster the overall luxury and lifestyle footprint in India. Anticipation surrounds the arrival of The Aarlis Hotel Panchkula, marking a key milestone for the brand in India. While the Kimpton brand’s entry is still under review, Jain assures stakeholders that any movement would be cautious and selective.

Drivers Behind IHG’s Momentum in India

Several factors underpining IHG’s confidence in India include:

• Strong Domestic Travel Demand: A burgeoning middle class is contributing to an increase in domestic travel.
• Rapid Infrastructure Development: Enhancements in transport and urban facilities provide a conducive environment for hospitality growth.
• Growing Preference for Branded Hospitality: Travelers increasingly favor recognized brands offering predictable quality and service.
• Increasing Investor Confidence: The landscape is becoming warmer for investments, with a promise of satisfying returns.

Jain succinctly captured IHG’s ethos: “We bring the right platform to India—a highly investible model, strong owner relationships, and products across every segment.” As the intersection of luxury real estate and hospitality in India continues to grow, IHG’s initiatives signal a burgeoning confidence in the country’s long-term consumption story, well-supported by both aspiration and scale.