Royal Orchid Hotels plans to open at least 50 new properties across India over the next 12 to 18 months as the mid-scale hospitality group accelerates expansion, betting that geopolitical tensions and higher international travel costs will continue to boost domestic tourism demand, its founder said.
The company’s growth strategy comes as conflicts in the Middle East and broader global uncertainty have dampened outbound travel, with airlines increasing fares and reducing capacity. A weaker rupee has also made overseas trips more expensive for Indian travelers. Although a tentative U.S.-Iran agreement has helped ease some tensions, the lack of detailed provisions has kept market uncertainty elevated.
India Ratings and Research, a domestic credit rating agency, expects hotel demand and supply in India to grow between 10% and 15% in the current financial year, according to a note published last week, reflecting strong underlying momentum in the sector.
“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 founder and Chairman Chander Baljee said in an interview, adding that he remained optimistic about sustained growth in the hospitality industry.
Royal Orchid, which currently operates about 120 hotels, aims to increase its room inventory to roughly 11,000 by the end of 2027, up from about 8,000 now, Baljee said.
He said religious tourism, business travel and large-scale events are becoming key demand drivers, with Indian consumers increasingly prioritizing spending on experiences and travel.
The Bengaluru-based hotel group operates under an asset-light model, relying primarily on management contracts and franchise agreements, a structure that enables faster expansion with relatively low capital expenditure.
Royal Orchid is present in more than 65 locations across India, including major metropolitan areas, Tier-2 and Tier-3 cities, as well as leisure and pilgrimage destinations. It also has a limited presence in international markets such as Sri Lanka and Nepal, where the company is considering further expansion, though Baljee said its near-term focus remains firmly on India.
