The InterContinental Hotel Group (IHG) has recently revealed it’s plan to open up 13 new Hotels all over India. They already have 13 hotels in India with another 21 in the pipeline. The first IHG hotel opened in India in 1962, in Delhi. Since then the group has been expanding throughout India, focussing on tourist and business attracting cities like Pune, Chennai, Goa and Ahemdabad. IHG includes hotel brands like InterContinental, Crowne Plaza and Holiday Inn Express and Holiday Inn Hotel & Resorts.
The growth of middle class in India has been the main reason for the success of mid-scale hotels like the Holiday Inn Express and Holiday Inn. Their has been improvement in the quality of life of the middle class in India and also increase in spending power. This combination has made the mid scale hotels in India very popular and the rooms sought after. Domestic business travel has also increased substantially and hotels like Holiday Inn Express provide a good value for business travellers. There were over 850 million domestic trips taken by the Indians last year and mostly by the middle class. 85% of the hotels IGH is opening is marketed to that sector, the mid market. However, currently only 15% of all rooms in India cater to that market.
As India is becoming more and more popular tourist destination, recruitment is becoming a big challenge for the hospitality industry, including for IGH. Apart from bringing in internationally experienced staff to work with the Indian trainees, they are also working with local educational institutions to provide training in hospitality. At the moment IHG has 9 academy programmes with local institutions in cities like Delhi, Pune, Bangalore and Mumbai. Every year more and more fresh graduates from the hospitality industry are joining IHG. With the expansion, IHG also will create 2600 more jobs in addition to the 3400 already working with them.