IHG Hotels & Resorts is in discussions with developers to bring its luxury Vignette Collection brand to India in a bid to diversify it’s presence in the country.

Globally, over 70 per cent of the group’s portfolio comprises of mid-market Holiday Inn and Holiday Inn Express brands. In India too the group’s 52 operating hotels mainly comprise of Holiday Inn and Holiday Inn Express properties.

IHG is now looking to expand its luxury offerings in the country while continuing to grow it’s mid-market brands.

On Thursday it announced the signing of a management agreement with Adyar Gate Hotels to launch its luxury InterContinental brand in Kodaikanal by 2028. While there are four Intercontinental hotels in operation in India and Bangladesh, another six are in pipeline. The group also has two luxury Six Senses resorts in India.

“ We are seeing a shift in demand for luxury,” said Haitham Mattar, IHG’s managing director in charge of India, Middle East and Africa regions.

Holiday Inn and Holiday Inn Express, however, continue to be mainstay of the group and it will open brands which are relevant to the market. In India which is largely a domestic driven market brands like Holiday Inn have a better appeal, Mattar said.

Mattar said the group’s hotels in India are performing better this year compared to 2023 and this has helped it to offset the impact on properties in Jordan and Lebanon due to ongoing conflict in the region. “ The Indian market has outperformed compared to 2023. Our revenue per available room is up 9 per cent. India is helping to balance the growth in the region,” Mattar added.

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