Bengaluru, Jan 28: India’s mid-scale hotel segment is witnessing significant growth, with the market expanding at a 13% CAGR and poised to reach USD 6.3 billion by 2030, up from USD 3.75 billion in 2023. A new white paper by Hotelogix, a leading global provider of cloud-based hospitality solutions, highlights key trends shaping the sector, including consolidation, international expansion, technology adoption, and IPO momentum.
Titled “India’s Thriving Domestic Mid-Scale Hotel Brands – Redefining the Industry with Consolidation and Collaboration, International Expansion, and Technology Adoption”, the white paper was released following the 2nd edition of Hotelogix & AxisRooms Connect, the only industry event dedicated exclusively to domestic mid-scale hotel brands.
Consolidation and Collaboration
The report predicts that by 2030, large hotel brands — both Indian and international — will control 75%-80% of branded mid-scale rooms, driven by acquisitions and partnerships with local 3-star and budget-plus properties.
“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.
International Expansion
Since 2020, 15-20 domestic mid-scale brands have ventured abroad, targeting markets such as the UAE, Nepal, and East Africa. By 2030, around 30% of India’s mid-scale hotel brands are expected to expand internationally, serving the growing base of 30 million outbound Indian travelers. Brands such as Lemon Tree and Royal Orchid Hotels are already operational in Dubai and Sri Lanka, while others like Elivaas are exploring franchise-led expansion.
“By 2030, about 30% 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
Digital adoption is accelerating, with one in three multi-property mid-scale brands already using cloud-based platforms. By 2030, adoption is projected to reach 60%-70%, enabling centralised control, scalability, and AI-driven operational efficiencies.
“Affordable, modern cloud solutions now allow smaller brands like ours to digitise operations, making technology adoption much more accessible,” said Jaideep Ahuja, MD & CEO, Ahuja Residency.
IPO Momentum
Currently, around 5% of domestic mid-scale brands are publicly listed. The white paper projects that 6%-8% more brands will pursue Initial Public Offerings (IPOs) over the next two years.
“Growth-focused brands with asset-light models will continue to attract capital, reflecting buoyant investment across the hospitality sector,” said Arjun Baljee, President, Royal Orchid Hotels Ltd.
“India’s mid-scale hotel brands, representing roughly 60% of the country’s branded rooms, are leveraging local insights and agile business models to capture new demand in emerging cities,” added Aditya Sanghi, CEO, Hotelogix.
The white paper underscores that consolidation, international expansion, technology adoption, and capital market participation will define the next phase of growth for India’s mid-scale hotel industry.