Aviation and hospitality conglomerate InterGlobe Enterprises recently announced the launch of a new lifestyle hotel brand, Miiro, at various locations in Europe. In June, global hospitality technology company Oyo launched its first luxury hotel in Dubai—Palette Royal Reflections Hotel and Spa—to strengthen its premium property portfolio in the Gulf region. Signum Hotels & Resorts, in a joint venture with property management solutions brand 360 Stays, has a portfolio of serviced apartments that include over 700 units across 39 locations in the UK and 45 units in the Middle East. The brand recently unveiled an office establishment in Dubai too, with plans to add another 250 serviced apartments in both Dubai and the UK, besides three hotels in the UK and one in Dubai.
Not just the big fish, even small Indian hotel chains are eyeing international markets by expanding operations overseas. And, their focus is markets that are frequented by Indian travellers. Mandeep S Lamba, president and CEO (South Asia) of hospitality consulting firm HVS Anarock, said: “Outbound travel has recovered post-pandemic, and with per capita income levels expected to grow significantly over the next few years, discretionary spending on travel will be a major beneficiary of enhanced disposable incomes.”
“Given the size of our population and the projected lifestyle improvements, Indians are expected to become the largest outbound source market globally, overtaking the Chinese by the turn of the decade, leading to substantial consumption of hotel rooms in key global travel markets,” Lamba added. For instance, Dubai is a favourite destination for Indian travellers, with a 11% YOY increase in the number of international visitors in the first quarter of 2024. India ranked top in the number of passengers, with a total of 11.9 million visitors to Dubai in 2023, followed by Saudi Arabia with 6.7 million tourists and the UK with a total of 5.9 million tourists.
“The combination of rising affluence, the perception of Dubai as a luxury destination, and the desire for exclusive experiences among Indian tourists is expected to drive the demand for premium hotels in Dubai,” said Nitin Gupta, business head, Oyo Middle East, who has seen a surge in the number of Indian tourists asking for luxury accommodation in the region.
With around 170,000 hotels and homes in 35 countries, Oyo has a healthy presence around the globe, including Europe, the US, Middle East and southeast Asia. Oyo’s ongoing efforts to strengthen its premium property footprint across the world adds to over 700 properties in UAE, including over 200 in Dubai alone. Oyo Vacation Homes in Europe already operates full-service holiday homes providers such as DanCenter and Belvilla, and online marketplace Traum-Ferienwohnungen.
Miiro is part of InterGlobe’s diversification strategy into Europe to cater to a wider range of travellers. “Our philosophy of creating ‘brilliantly considered stays’ inspires these hotels,” said Neena Gupta, CEO, Miiro Hotels. The room rates start from 350 pounds a night. The brand has announced boutique hotels Miiro Le Grand Hôtel Cayré in Paris to open soon; Miiro Borneta, Barcelona, in August, followed by London and Vienna in 2025.
Signum, which has 12 properties in India, is targeting expatriates, tourists, and foreigners seeking both short-term and long-term stays in Dubai with serviced apartments located in prime areas such as Bay Area, La Mer, Jumeirah Lake Towers, Emaar Greens, and Sheikh Zayed Road. “We took a calculated risk to take our domestic operations, which started in 2019, abroad by introducing serviced apartments in the UAE and UK, and identified a growing demand for flexible, high-quality accommodation in these markets. Our switch into the UAE and UK markets has proven successful, enhancing our brand presence and providing valuable experience in managing serviced apartments globally,” said Mehul Sharma, founder & CEO, Signum Hotels & Resorts, which is planning an investment of 2-5 million dirhams in Dubai over the next two years.
Lemon Tree has hotels in Dubai, Nepal and Thimphu, while Royal Orchid Hotels operates a sub-segment brand Regenta in Sri Lanka, Nepal and India along with Royal Orchid in India. “Expanding internationally is a strategic move for us because travellers seek familiar and trusted hospitality brands when they venture abroad. It also allows us to tap into new markets, enhance brand recognition, and attract a broader customer base,” said Chander Baljee, CMD of Royal Orchid Hotels.
The smaller chains add to an already existing portfolio of established hospitality players such as ITC Hotels, Indian Hotels Company, The Oberoi Group and Club Mahindra, who all have a global presence.