India’s hospitality sector is undergoing a generational transformation. A rising middle class, increasing disposable incomes, and a sharp uptick in both domestic and inbound travel are driving demand for accommodation that balances affordability with quality. The mid-scale hotel segment, sitting neatly between budget-conscious offerings and premium hotels, is fast emerging as the most promising space in this evolving landscape.
The InterGlobe Template
InterGlobe in partnership with Accor, has been developing and scaling the ibis brand across India since 2004 and this has provided us with deep insights into this segment. Our journey with the brand has been both foundational and instructive, learning that consistency, cost control, and guest-centricity are the cornerstones of successful mid-scale hospitality.
We are now building on our proven model with a focus on personalization and design-led experiences. Our approach focuses on progressing with insight and intention, enhancing our offerings to meet the evolving needs and preferences of our guests while maintaining the core values that have made InterGlobe Hotels and ibis a trusted name in hospitality.
This article presents a strategic framework for developing a next-generation mid-scale hotel brands in India—one that emphasizes efficient design, thoughtful art integration, operational efficiency, and a strong global brand and distribution backbone.
Defining the Brand Philosophy
The brand vision is rooted in offering more than just accommodation. It is about crafting thoughtfully designed spaces that reflect local culture and provide guests with a seamless, technology-enabled stay experience. A design-forward approach ensures visual sophistication without excess, while curated art, inspired by regional identity, adds depth and emotional resonance. The brand built on authenticity, service excellence and reliability fosters trust and a loyal customer base.
Operationally, the focus should be on efficiency, encompassing not just service but also planning, construction, and the maintenance of buildings. With a sharp focus on tier-1, tier-2 and potential tier 3 cities, where the demand-supply gap is pronounced, the aim should be to deliver hospitality that is accessible, scalable, and memorable.
The Architecture of Smart Growth
A key enabler of the strategy is architectural and cost efficiency. Better space utilization, reduced land and construction costs, and enhanced energy efficiency across the properties can be achieved by maintaining a gross floor area of 38 to 40 square meters per key, inclusive of back-of-house areas. Compact yet ergonomic room layouts of 18 to 20 square meters allow for both comfort and functionality. Modular construction techniques support scalability and quality consistency. Multifunctional areas can enhance efficiency by allowing spaces to serve diverse purposes such as co-working, meetings, art exhibitions, and community events, thereby maximizing the utilization of available resources.
In locations where it is permitted, prioritizing surface parking minimizes both cost and environmental impact. Façade treatments designed with thermal efficiency in mind, reduce operational overheads and enhance guest comfort.
Setting a cost-per-key target of INR 38–45 lakhs to include construction, interiors, incidental development costs, and pre-opening expenses brings financial discipline. Timeless room designs and the use of locally sourced materials ensure both financial discipline and sustainability. This thoughtful cost management enables the brand to deliver premium guest experiences at a mid-scale price point, creating a compelling value proposition for developers and guests alike.
A Global Reach with Local Touch
From a distribution standpoint, the brand’s strength lies in its global reach and local agility. By integrating local customs, traditions, and preferences, brands can resonate more deeply with the consumers. This involves tailoring products and services to meet local tastes, forming partnerships with local businesses, and engaging in community activities.
Even in the design space, this integration helps create a deep sense of place. Each hotel becomes a cultural capsule, highlighting the heritage, colors, and textures of its location. Collaborations with local artisans and design schools bring authenticity to the public spaces, while guestrooms adhere to a uniform functional template, but infused with regional identity. Visual language remains globally consistent but is enhanced by local nuances from textiles and wall art to lighting and accessories. Design, in this context, is not merely aesthetic; it is a form of storytelling. At our hotels ibis Music serves as one of the key pillars and with ibis literature, in the form of mini libraries in our latest hotels, our aim is to enhance the guest experience.
Additionally, localized marketing strategies that use local languages and cultural references help in creating a relatable and impactful brand message. Social media engagement with regional influencers helps to stay relevant and visible in today’s digital-first landscape. Furthermore, developing localized products, hiring local talent, implementing sustainable practices, and establishing local supply chains can further strengthen the brand’s connection with the local market, ensuring a seamless blend of global expertise and local relevance.
Simplifying Service, Elevating Experience
Simplifying service and elevating the guest experience in hotels involves a multifaceted approach that includes operational excellence, loyalty programs, exceptional service, technology integration, culinary excellence, streamlined check-in/check-out processes, and much more. By establishing clear standard operating procedures, continuous staff training, and quality control measures, hotels ensure consistent and efficient operations. Loyalty programs with tiered rewards and personalized offers encourage repeat visits. Culinary excellence delivered through diverse menus, local sourcing, and unique dining experiences, makes the entire guest experience more memorable.
At our hotels, to ensure consistent service quality, we track guest satisfaction rigorously through Net Promoter Score (NPS), linking it directly to team performance. Our “One-Touch Fix” philosophy empowers teams to resolve guest concerns in a single interaction, fostering trust and loyalty. Real-time feedback systems help to monitor and improve service delivery, pre-empt issues, and elevate the overall guest experience.
Together, these strategies create a seamless and memorable stay for guests, fostering loyalty and long-term success in the hospitality industry.
Targeting High-Potential Growth Geographies
Identifying and focusing on regions that exhibit significant economic development, increasing consumer demand, and favorable market conditions is crucial for achieving sustainable business growth. India is growing rapidly and while tier 1 shows high growth, similar or higher growth and potential are being seen in both tier 2 and 3 locations. Domestic travel has surged in popularity, with an increasing number of Indians considering travel a necessity rather than a luxury. This change in mindset has significantly boosted the demand for hotel accommodation, especially in tier-II cities that are gaining prominence as new tourist hotspots.
Additionally, due to the rising GDP per capita, growth in the manufacturing industry, and improvements in road infrastructure, high-potential growth cities are emerging across the country. The market’s appetite to absorb new hotel developments is substantial, given the current under penetration in the hotel sector.
Shaping the Future of Indian Hospitality
India is ready for a new kind of mid-scale hospitality experience—one that blends artful living, tech-savvy convenience, and grounded value. With disciplined development, an eye for detail, and smart use of design and distribution, this brand has the potential to redefine how India and the world experience domestic travel. The goal is not just to build rooms, but to build memories, stories, and local pride into every stay.
At InterGlobe Hotels we not only meet the evolving needs and preferences of modern travelers but also contribute positively to the communities we operate in, driving sustainable growth and long-term. Our vision is to bring to life—one thoughtfully crafted hotel at a time.
