IHG Hotels & Resorts, in collaboration with Samhi Hotels, has launched its second Holiday Inn Express in Kolkata, marking a significant step in their long-term expansion strategy within India’s booming hospitality sector. With a ₹40 crore investment and 113 keys, the hotel adds to IHG’s growing domestic footprint of 52 operational properties. Samhi Hotels owns 12 of the 18 Holiday Inn Express sites nationwide. Both firms foresee vast growth potential across tier-II and tier-III cities, aiming to tap into the robust domestic travel market. Their plans are backed by record new signings in 2025 and increasing investor interest in India's regional hospitality space.
Kolkata Launch Signals Aggressive Expansion Strategy
The inauguration of a second Holiday Inn Express in Kolkata marks a calculated push by IHG Hotels & Resorts and Samhi Hotels to deepen their penetration into India’s high-potential hospitality market. Located in a region witnessing stable and steady tourism demand, this ₹40 crore investment underscores institutional confidence in the commercial viability of East India.
This 113-room property—owned by Samhi and operated by IHG—is now the 18th Holiday Inn Express hotel in the country and the second in the eastern metropolitan hub. Samhi’s ownership of 12 out of the 18 nationwide properties under the brand points to a robust partnership and deep-rooted confidence in IHG’s mid-scale offering.
India’s Hospitality Market: A Strategic Growth Engine
India, now the world’s third-largest domestic travel market, has become a central focus in IHG’s Asia-Pacific expansion blueprint. With over 300 hotels in China, IHG believes India—particularly high-density urban centres like Kolkata—can support many more branded hotels.
Sudeep Jain, Managing Director of South Asia at IHG Hotels, noted that Kolkata alone could accommodate up to 20 Holiday Inn Express hotels, including in satellite cities. This projection is based on increasing mobility, disposable incomes, and a broadening demand for branded, affordable accommodations among both business and leisure travellers.
Regional Growth and Management Focus
IHG currently operates 52 hotels under six brands across India, including InterContinental, Crowne Plaza, Six Senses, Holiday Inn, and Holiday Inn Express. With a deepening focus on tier-II and tier-III cities, IHG is actively seeking management contracts in emerging Bengal destinations such as Durgapur, Siliguri, Shantiniketan, Digha, and Darjeeling.
Ashish Jakhanwala, Chairman and Managing Director of Samhi Hotels, echoed the optimism. He emphasized that the newly opened Kolkata property is “the first of many” in the region. He added that Samhi is already in talks for further acquisitions in the city, leveraging the growing enthusiasm among institutional investors to fund hotel development in Eastern India.
Pipeline Expansion and Market Momentum
IHG has set an ambitious growth trajectory, with 84 hotels in various stages of construction across the country. This pipeline indicates a potential 2.5x expansion in their India portfolio without factoring in new signings.
The pace of growth is accelerating. Jain confirmed that the company has already surpassed the total number of deals signed in all of 2024 within the first half of 2025. In 2024, IHG had signed agreements for 18 hotels—a figure that has already been eclipsed this year.
This comes even as India Ratings and Research (Ind-Ra) predicts revenue per available room (RevPAR) growth to stabilize by FY26 after strong gains in FY25. Yet, IHG’s bullishness signals its confidence in sustained consumer demand and brand differentiation.
Institutional Capital and Policy Backing
One of the key enablers for this expansion is the influx of institutional capital into the Indian hospitality sector. Investors are increasingly viewing hotels not just as real estate but as high-yield operating assets. Jakhanwala emphasized that such investment activity, especially in East India, is indicative of a maturing market ripe for branded accommodations.
Moreover, both IHG and Samhi officials praised the government’s recent efforts to streamline regulatory approvals and promote fast-track clearance mechanisms. These policy shifts, they believe, will facilitate quicker rollouts, attract more FDI into hospitality, and generate significant employment across regions.
Outlook: Hospitality’s Next Frontier Lies in the Heartland
As India's travel infrastructure continues to improve and urbanization sweeps across smaller cities, demand for organized, mid-scale accommodations is poised to rise. Brands like Holiday Inn Express, which blend international standards with operational efficiency, are well positioned to meet this growing need.
With Kolkata serving as a springboard for Eastern India and a large pipeline under development, IHG and Samhi Hotels appear strategically aligned to capture a sizeable share of the next wave of hospitality growth in India.
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