India's Royal Orchid Hotels plans to open at least 50 hotels in the next 12 to 18 months across the country, its founder said, as the company bets on geopolitical tensions driving more Indians to travel locally rather than abroad.
The Middle East conflict has curbed travel, with airlines raising fares and cutting capacity, while a weak rupee has made overseas trips costlier. Although a tentative U.S.-Iran agreement has eased tensions, the deal is short on details, keeping uncertainty high.
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Credit rating agency India Ratings and Research expects India's hotel demand and supply to grow 10% to 15% in the current financial year, it said in a note last week.
"A lot of people who were planning to go for holidays to the Middle East and other places cancelled their trips and boosted domestic tourism demand," Royal Orchid's founder and chairman, Chander Baljee, said in an interview, adding he remained optimistic about demand for the hospitality sector.
Royal Orchid, which runs 120 hotels, aims to raise room inventory to about 11,000 from 8,000 by the end of 2027, Baljee said.
Religious tourism, business travel and large-scale events are emerging as key drivers, with consumers spending more on experiences and travel than before, Baljee added.
The Bengaluru-based mid-scale hospitality chain follows an asset-light model built on management contracts and franchising, allowing rapid expansion with minimal capital.
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It operates in more than 65 locations across metro cities, Tier‑2 and Tier‑3 towns, and leisure and pilgrimage destinations, as well as select markets such as Sri Lanka and Nepal.
The company is exploring expansion in those markets, though its immediate focus remains on India, he added.
