Global hospitality giant Hilton is set to introduce its premium economy hotel brand, Spark by Hilton, in India, with an ambitious target of developing 150 properties within the next decade. This strategic move aims to cater to the growing midscale segment in tier I and tier II cities, with an affordable pricing range of INR 4,000 to INR 6,000.
Alan Watts, President, Asia Pacific at Hilton, described this as the largest hotel deal in Asia Pacific this year, highlighting India’s potential. “India has 400 million midscale consumers today, with another 140 million expected in the next five years. With expressways being built, airports privatized, and domestic air travel surging to 700 million trips annually, the time for midscale growth in India is now,” Watts emphasized.
The Spark by Hilton brand promises quality hospitality at an entry-level price, enabling a new class of travelers to experience Hilton’s renowned service. Additionally, Spark will provide Indian travelers access to Hilton’s 24 global brands, including Hampton, Hilton, and the luxury Waldorf Astoria.
To bring Spark to life, Hilton has partnered with Olive by Embassy under a strategic licensing agreement. Olive by Embassy will play a key role in property development. Co-founder and CEO Kahraman Yigit noted, “The timing is ideal with the surge in domestic travel. India urgently needs high-quality mid-market hotels, and Spark by Hilton fills this gap.”
The new properties will be cost-efficient, with development expenses ranging from INR 26 lakh to INR 30 lakh per room. Targeted locations include Maharashtra, Telangana, Karnataka, Andhra Pradesh, and Goa, among others, with flexible pricing in smaller markets to meet local demand.
Hilton’s entry into India’s midscale segment reflects its commitment to tapping the country’s booming travel and tourism sector while meeting the evolving needs of modern travelers.