Written By: Bandana Gupta

Step into any bustling Indian metropolis today, from the corporate corridors of Gurugram to the tech hubs of Bengaluru, and you'll feel it: a new, dynamic pulse. This isn't just the rhythm of commerce; it's the beat of a new consumer culture. Today's urban Indian, a blend of aspirational millennials, globe-trotting Gen Z, and discerning business travellers, isn't just looking for a place to stay. They're seeking experiences. They desire spaces that are efficient for work, vibrant for socialising, and seamless in their service. In response to this demand, a powerful and profitable trend is reshaping the hospitality landscape: the multi-brand investment model, specifically the strategic partnership of a hotel with a café franchise. 

What is the Hotel + Café Franchise Model?

A Hotel and Cafe franchise combines hospitality and food services, offering guests accommodations and dining options under one brand or multiple brands. This model is attractive due to its potential for diversified revenue streams and enhanced customer experience.

Essential Features of a Successful Hotel and Café Franchise Business Model in India

• Integrated Services: Hotels and cafes operate together, providing convenience and a seamless experience for guests.

• Diversified Revenue: Income comes from both room bookings and food/beverage sales, potentially increasing profitability.

• Brand Recognition: Partnering with established brands can attract more customers and increase loyalty.

• Operational Efficiency: Shared resources and streamlined operations can reduce costs and improve service quality.

Key Benefits of Investing in Hotel and Café Franchise Models in India

• Lower Investment Threshold: Compared to standalone luxury hotels, Hotel+Cafe franchises might require lower initial investments.

• Growth Potential: India's growing tourism and business travel sectors create opportunities for increased occupancy and revenue.

• Flexibility: Franchises can cater to various market segments, from budget-friendly to luxury, depending on the brand and location.

Examples of Hotel+Cafe Franchises:

• OYO Hotels and OYO Cafe: Budget-friendly options with standardised services.

• Treebo Hotels with In-house Cafes: Mid-range hotels offering quality accommodations and dining.

• Independently Branded Properties: Some hotel chains partner with cafe brands to create unique experiences.

This model appeals to investors looking to capitalise on India's growing hospitality market while offering guests a comprehensive experience.

The Hotel + Café Franchise Model: A Smart Choice for Hospitality Investors in Urban India

1. Maximising Real Estate Efficiency

Hospitality investors are looking to optimize every square foot. A café on the premises adds value to underutilized lobby spaces, rooftops, or ground-floor corners. It generates an additional stream of daily footfall that isn’t entirely dependent on room bookings.

2. Higher ROI and Dual Revenue Streams

Hotel rooms offer occupancy-based revenue, while café franchises generate daily F&B income. Together, they create a complementary income model that evens out seasonality and boosts overall returns. For investors, this means quicker breakeven and greater resilience.

3. Franchise Power: Built-In Brand Equity

Pairing a hotel franchise like Ramada, Lemon Tree, or Zone by The Park with a café brand such as Coffee Culture, Third Wave Coffee, or Café Delhi Heights immediately enhances brand recognition. Consumers trust franchises; this familiarity drives walk-ins and repeat stays.

4. Targeting the New Urban Consumer

Urban millennials, digital nomads, and business travelers all seek lively common spaces, artisanal coffee, and casual dining options. A hotel paired with a well-known café brand fits perfectly with this changing lifestyle.

Operational Synergies

Hotels already have operational setups for staff, electricity, waste management, and security. Adding a café franchise doesn’t require a separate infrastructure, making it easier and more cost-effective to operate both formats under one roof.

Hotel Franchise in India: A Lucrative Path for New Hospitality Entrepreneurs

As domestic and international travel continues to grow, India's hospitality sector is experiencing rapid development, far outpacing the recovery seen in the post-pandemic years. Hotel franchises, in particular, present a highly rewarding opportunity, especially in areas with strong tourism appeal or expanding business hubs. These franchise models offer a major advantage: there's no need to build a brand from scratch. With an established name comes built-in credibility, marketing support, and a consistent stream of guests.

The Rise of Hotel Franchising in India

Domestic travel is becoming increasingly popular across the country, opening up exciting investment opportunities in many regions. Recent predictions predict USD 32 billion in hotel investments in India by 2028.  Hotel franchises are playing a key role in this growth, making it easier for new entrepreneurs to tap into the market by leveraging the trust and recognition of established brands.

Why Investing in a Hotel Franchise in India Makes Business Sense

Strong Brand Recognition

India’s growing hospitality and tourism sectors offer massive potential, and hotel franchises provide a head start with well-known brands. These established names come with proven operational systems, making it easier for new entrepreneurs to enter the market confidently.  

Reduced Risk, Greater Success

Launching a hotel from the ground up carries significant risk. With structured systems for operations and marketing already in place, franchisees benefit from higher chances of success and lower chances of failure.

Access to Advanced Technology and Tools

Hotel franchises equip their partners with the latest technology to streamline operations. From automated bookings and occupancy tracking to efficient guest service tools, these systems help franchisees run the business smoothly and seize growth opportunities.

Marketing and Branding Support

One of the biggest challenges for any new hotel is getting noticed. Franchises solve this with nationwide promotions, loyalty programs, digital campaigns, and a strong online presence—all provided by the parent brand to drive bookings and build trust.  

Comprehensive Training and Staff Development

A skilled team is the foundation of any successful hotel. Franchise brands offer in-depth training programs to ensure that both the owners and their staff are well-prepared to deliver professional and consistent hospitality services from day one.

Top-Performing and Most Popular Hotel Franchise Opportunities in India for 2025

India’s hotel franchise market caters to a wide range of investment levels, from affordable budget chains to premium luxury properties. Here’s a look at some of the most well-known hotel franchise brands in India as well as their investment profiles:

Oyo

Initial Investment: ₹2–5 lakhs Oyo is one of India’s most recognizable budget hotel brands, known for its affordability, rapid expansion, and presence in nearly every corner of the country. It’s an attractive option for small investors and local hotel owners looking to standardize and also grow their operations under a trusted name.  

Marriott International

Initial Investment: ₹37.14–59.42 crores

Marriott offers a range of high-end and premium hospitality experiences, with globally known sub-brands like JW Marriott, Courtyard, also Fairfield. It's ideal for investors seeking a reputable, internationally acclaimed brand with luxury appeal.

Holiday Inn (part of IHG Hotels & Resorts)

Initial Investment: ₹55.35–182.21 crores Holiday Inn is a well-established global brand known for delivering reliable midscale to upscale hospitality experiences. Known for consistent quality, comfort, and amenities, it suits investors looking to cater to both business and family travellers.  

Hyatt Hotels

Initial Investment: ₹325.15–1127.70 crores Hyatt represents the luxury and ultra-premium segment, offering top-tier experiences under brands like Hyatt Regency, Park Hyatt, and also Andaz. It is suited for large-scale investors looking to establish five-star properties in metropolitan or tourist-heavy regions.

Treebo Hotels

Initial Investment: (₹2.65–6.62 crores) Treebo targets the budget and economy hotel segment with an emphasis on clean, quality service and also tech-driven guest experience. It's an excellent choice for budget-conscious investors looking to provide dependable lodging in tier-2 or highly sought-after urban areas.

Why Multi-Brand Hospitality Investments Are Gaining Momentum in India

India's hospitality landscape is evolving rapidly, and one of the most exciting trends reshaping the industry is multi-brand investment, particularly the Hotel + Café franchise model. This approach blends lodging as well as food services under one roof—often with two established brands—to offer a seamless guest experience and multiple revenue streams. But what’s driving this trend?

Key Reasons Behind the Surge in Multi-Brand Hospitality Investments

Smart Diversification for Better Returns

By investing in multiple hospitality segments, like hotels and cafés,  entrepreneurs can spread their risk as well asbalance seasonal fluctuations. This diversification helps maximize overall profitability and creates a more resilient business model.

Strong Industry Growth

India’s hotel industry is growing steadily. Over the past five years, the number of rooms available and also booked has gone up by around 6–7% each year. This makes it a great option for people looking to invest and earn good returns in the long run.

Rising Demand from Domestic and International Travel

An increase in both tourism and business travel is fueling the need for quality  accommodations and dining options. More Indians are travelling across the country, as well as global visitors are returning—creating strong, consistent demand.

Franchise Support Enhances Operational Ease

 Hospitality franchisors provide extensive support in the form of staff training, operational guidance, technology platforms, and also marketing. This makes it easier for new investors to manage day-to-day operations while maintaining high service standards.

Conclusion:

As Indian cities grow more cosmopolitan, hospitality is shifting away from standalone services toward integrated, experience-driven offerings. Integrated franchise models that combine stay, dine, and unwind experiences are proving to be more profitable and scalable. For investors looking to capitalize on India’s growing tourism and urban lifestyle demand, multi-brand hospitality models are the way forward.

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 risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.