Written by: Resham Daswani

Have you ever wondered why investing in a hotel franchise in India this year can be very promising?  Read on, to know why we think this is the right time to start a hotel franchise in India.

The India Luxury Hotel Market is expected to grow at a rate of less than 7% per year.  In India, the luxury hotel business is doing very well. International sports events, trade shows, and exhibitions are likely to bring in more tourists from other countries and move more tourists within the country.

The growth of the travel and tourism business and changes in the way people live have caused the luxury hotel market trends to grow over time. Over the next few years, the India Hotel Market will be driven by major factors like rising purchasing power parity of domestic travelers, a growing airline industry, an increase in the number of foreign tourists, and looser visa limits.

But is that all good reasons to start a hotel franchise?  Well, there is more to it.  There are some key trends which have been governing this growing demand for more hotel businesses to enhance their presence across the country.

Hotel Franchises in India - Key Trends Making This Sector Look More Promising

Hotel business in India has witnessed a rapid surge post-pandemic and continues to be a promising opportunity for entrepreneurs or business owners looking to set foot in the business world.

Key Trends are.

• More expenses borne by domestic travelers are fueling this industry - Indian travelers are spending more than ever, and it's not just when they go abroad. Domestic luxury and brand hotels are noticing a rise in the proportion of business coming from domestic leisure travelers.
• Increase in Heritage-theme-based hotels - India has a lot of hotels with a theme based on the country's history. For example, The Leela Palace, an Indian Heritage hotel in Rajasthan, has always been on a mission to make its guests happy by offering unmatched luxury in a beautiful setting surrounded by nature and wrapped in the graciousness of Indian hospitality.
• Rise in International Players in the Indian Luxury Hotel Segment - Significant key players like Marriott, Hyatt, and Holiday Inn are proposing expansion across the country. 

10 Most Popular Hotel Franchises in India for 2023

1. Oyo Hotel

OYO is a global platform that helps entrepreneurs and small businesses with hotels and homes by giving them access to full-stack technology that helps them make more money and run their businesses more easily. Providing trusted, low-cost lodging that people can book right away.

We try to make our customers' lives easy by adding more ways to make money and using our knowledge of technology to increase demand.

• Investment Range - Rs 1-2 crores.

2. Mango Suites

IntelliStay Hotels owns and runs Smart Executive/ Leisure Hotels in India with the Mango Hotels Format and I-Stay Hotels Format. The Format is built on a commercial structure in which the company optimises both current and new hotel properties, hires Human Resources, manages day-to-day operations, standardises the newly created location, and promotes them through superior distribution channels.

Join forces with IntelliStay Hotels to get the most out of your purchases at the lowest cost. Their dedication to care makes sure that each hotel has a good experience.

• Investment Range - Rs 1-2 crores.

3. Marriott International

In 1967, Marriott International was founded, and in the same year, the company began to sell franchises. It is a brand of hotels that is known all over the world. Its offices are in Bethesda, Maryland.

Marriott International is one of the best hotel names to invest in if you want to start a business as a hotel franchise in India. By 2025, the company wants to own more than 100 buildings in India. The most famous high-end hotel in India is the JW Marriott, which was opened by Marriott International.

• Investment Range - Rs 35-60 crores.

4. Fab Hotels

Hello, we're FabHotels. We are building a budget hospitality brand in India that has been missing for a long time. Technology is at the centre of both the customer experience and the back-end processes.

All of our hotels have strict cleaning rules, go through strict auditing processes, and have friendly, well-trained staff to make sure that you don't have to worry about anything when you check-in.

Don't believe what we tell you. Give us a try the next time you want to stay somewhere that is good for your money. You'd understand what we're saying. We'd love to hear from you, and we'd be happy to answer any questions you might have about FabHotels.

• Investment Range - Rs 40-50 lakhs.

5. Lemon Tree Hotel

Lemon Tree Hotels Limited is India's biggest mid-priced hotel chain and the third largest overall based on its controlling interest in owned and leased rooms. We work in the high-end market and the mid-market, which includes the upper-middle, middle, and low-end markets. We give services that are different and better than others and are a good value for the money.

Both Lemon Tree Hotels and Keys Hotels can be found in India's major cities.

• Investment Range - Not Specified.

6. Wyndham Hotels

Wyndham is unlike anyone else. We're a hotel industry giant with a huge footprint, well-known brands, and the best rewards programme in the business.

But we are more than just our name and the buildings we own. We are a business that works hard to make hotel stays possible for everyone. The Wyndham Hotels & Resorts team works every day, all over the world, to make this goal come true.

We know that this means paying attention to both the happiness of our guests and the people who run our brands around the world. We're committed to taking great care of every hotel owner in the Wyndham family so that our guests can enjoy our vision of affordable hotel travel.

• Investment Range - Not Specified.

7. Treebo Hotels

The name "Treebo" comes from the "Bo Tree," the fig tree under which Gautam Buddha became enlightened. The fig tree family, which includes banyan and peepal, was the inspiration for both our name and what we do.

In many ways, these trees were the first budget hotels. They gave cover to travellers of all income levels and didn't care who they were. We, too, are obsessed with providing good lodging at prices that people can pay. People travelling together could have interesting talks in the cool shade of these trees.

We do our best to serve our guests, but we also enjoy having a few words with them.

• Investment Range - Rs 2-5 crores.

8. Choice Hotels

Choice Hotels India is a wholly-owned subsidiary of Choice Hotels International, which is one of the biggest and most widespread hotel franchisors in the world with over 7,000 hotels.

From Amritsar to Chennai, ClarionTM, QualityTM, ComfortTM, Ascend Hotel CollectionTM, and Sleep InnTM, all of which are international hotel names, offer good value for money.

Choice Hotels India has a wide range of comfortable and cheap places to stay, from budget to luxury hotels, with good service and a warm welcome.

• Investment Range - Not Specified.

9. Citrus Hotels

Citrus Hotels is a rare place where style, luxury, and ease all come together. It has a lively atmosphere, sophisticated facilities, majestic grandeur, a beautiful facade, extraordinary dining choices, and young professionals who are always ready to help with a smile.

You can eat at the multicuisine restaurant Biso or under the sparkling stars at Skylit. At Punchin, you can try a unique mix of Punjabi and Chinese food. You can also relax at the 60ml bar or cheer for your favourite team at the Turf Sports bar.

Choose Citrus Hotels to have a great stay anywhere, from the royal city of Jaipur to the backwaters of Kerala.

• Investment Range - Rs 30-50 lakhs.

10. Royal Orchid Hotels

Royal Orchid & Regenta Hotels is one of the hospitality names in India that is growing the fastest. It runs over 90+ properties all over the country. Royal Orchid & Regenta Hotels was started in 2001 by an industry veteran, Mr Chander K Baljee. It is a well-known and trusted company that plans to grow to 100 hotels by 2023.

We serve both business and pleasure travellers who care about comfort, great food, warm Indian hospitality, and getting the most for their money. Our guests keep coming back to our hotels, resorts, long-stay suites, inns in big towns, vacation spots, religious sites, and wildlife parks because they are modern and have everything they need.

• Investment Range - Above Rs 5 crores.

FAQs

Q.1. Are hotel franchises profitable in India?

Food and beverage franchises and hospitality franchises are the two most valuable business types in the Indian market. Both types of businesses come together in a hotel company. This makes it a good idea to start a hotel franchise business in 2023.

Q.2. What is the profit margin of the hotel business in India?

Generally, a profit margin of around 10% is good. A margin of 5% is low, and a margin of 20% is great. If a hotel has a low-profit margin, it can make up for it by trying to get more money per room through extra services and upselling.

To Conclude,

If you are a private or business investor who wants to buy a hotel or resort, you should first think about why you want to do so. Most likely, there will be a mix of things. But let that not put a stop to your search for the best luxury hotel franchises in India.

Nonetheless, get in touch with the experts at FranchiseBazar, to know more about the most popular hotel franchises in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risks and discretion. FranchiseBAZAR or its Directors, disclaim any liability or risks arising out of any transactions that may take place due to information provided in this blog.