Hotel industry consulting: what is changing in India’s hotel market
India’s hotel market is changing faster than at any time in the past generation. Amit Parmar helps owners understand what is changing and what it means for their decisions.
- Market insight from 40+ cities
- Tier 2 and 3 city opportunities
- Trends translated into decisions
- Owner-side only
- Paid by hotel owners, never by brands or vendors
- 100+ hotel projects
- Advised across India
- 50+ hotel brands
- In Amit’s working network
- 40+ cities
- From metros to tier 2 and 3 markets
A market being reshaped from the ground up
For decades, branded hotels in India were concentrated in the large metros, a few leisure destinations and state capitals. That map is being redrawn. Domestic travellers now make up the overwhelming majority of hotel guests in India, and they are travelling to more places: for work in growing industrial towns, for weddings and family events, for pilgrimage and for short leisure breaks enabled by new expressways and regional airports.
Hotel brands have followed. National and international chains now sign hotels in cities that would not have been on their development lists a decade ago, often with midscale and upscale brands designed for those markets. Amit’s own success stories show the pattern: Deoria, Gorakhpur, Bokaro, Hazaribagh, Bhilai, Bhilwara, Datia and Bhuj are not traditional hotel markets, and yet each now has a branded hotel that local owners built with his advice.
For owners and investors, this creates opportunity, and some new risks. Good hotel industry consulting helps you see both clearly.
Questions to ask about any hotel market
- What is bringing people to this city, and is it growing?
- How many branded and unbranded rooms exist today, and how many are planned?
- How much of the demand is weekday business versus weekend leisure and events?
- What do the best hotels charge, and how full are they?
- What will change in the next five years: roads, airports, industry, tourism?
Trends owners should understand
Amit tracks the industry through his projects, his network of 50+ brands and his time on the ground in 40+ cities. These are the shifts he discusses most often with owners:
- Tier 2 and 3 cities. Rising incomes, industrial investment and better connectivity are creating demand for branded hotels in smaller cities, where supply has been thin.
- Weddings and events. Social events remain a powerful revenue driver for Indian hotels, especially outside the metros, and properties are being designed around them.
- Spiritual and heritage tourism. Improved access to pilgrimage destinations has created year-round demand in towns that once saw mainly seasonal visitors.
- Brand proliferation. Chains have launched many new brands for different segments, which gives owners more choice and more need to compare carefully.
- Franchise and asset-light models. More brands now offer franchise and hybrid arrangements, shifting operating responsibility, and risk, towards owners.
- Distribution and reviews. Online travel agencies and review sites shape demand, especially for hotels without strong brand loyalty programmes.
None of these trends guarantees success. A city with rising demand can still be oversupplied if several hotels open at once. That is why trend insight has to be combined with project-specific research.
Turning industry insight into decisions
Industry knowledge is only useful if it changes what an owner does. Amit uses it in three ways. First, to judge opportunities: whether a city, a site or a segment is at the right point in its cycle for a new hotel. Second, to shape products: what the next generation of guests in a particular market will expect, and what they will not pay for. Third, to strengthen negotiations: knowing what brands are offering elsewhere gives owners a realistic benchmark.
Owners can access this insight through a feasibility study for a specific project, a strategy review for an existing hotel or group, or simply a conversation about a city they are considering. Amit also writes regularly for owners in the insights section of this site.
Hotels Amit has advised
Every tag is a real hotel. Sarovar, Clarks, Lemon Tree and more, across six states.
Is it a good time to build a hotel in a tier 2 city?
In many tier 2 and 3 cities demand for branded hotels has grown faster than supply, but each city is different. A feasibility study tells you whether your city and site are at the right point.
Which hotel segments are growing fastest in India?
Midscale and upscale branded hotels in smaller cities, and properties serving weddings, events and spiritual tourism, have seen strong interest. Your local market matters more than national trends.
Are franchise models better for owners?
They give owners more control and lower fees, but also more responsibility. They suit owners with capable operating teams.
How do new expressways and airports affect hotels?
They can create new demand and change which locations are attractive, sometimes quickly. Amit factors planned infrastructure into market studies.
Do you publish market research?
Amit shares practical notes for owners in the insights section of this site. Detailed research is prepared for specific projects.
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Tell Amit about your hotel project
Amit reads every enquiry himself and replies within one working day.
- Owner-side only: no fees from brands or vendors
- First conversation is free and confidential
- Your details are never shared with brands without your consent