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Hilton Bets Big on India's Booming Travel Market
3 Sep
Summary
- India is poised to be the world's most exciting travel market.
- China's weak consumer confidence impacts regional hotel performance.
- Hilton plans 400 more hotels in India, focusing on mid-scale brands.
Hilton's Asia Pacific President, Alan Watts, has declared India the most exciting global market for travel and tourism, predicting it will become the third-largest lodging market worldwide over the next decade. This forecast highlights a significant strategic focus for the hotel company.
Despite this strong outlook for India and momentum in Southeast Asia and Japan, Hilton's overall Asia-Pacific performance was impacted in the second quarter by weakness in China. Low consumer confidence outside of holiday periods has affected business in that region.
Hilton is aggressively expanding in India, with 60 hotels under construction and commitments for an additional 400 properties. The company is shifting its strategy to include mid-scale brands like Hampton and Spark by Hilton, specifically targeting domestic travelers in tier-two and tier-three cities.
The company also sees potential in religious tourism, noting a lack of branded supply at major pilgrimage sites. Indian real estate owners are funding these developments, with Hilton managing the properties without balance sheet commitment.
