Wyndham Hotels & Resorts is expanding its brand portfolio in India and will be bringing its Microtel by Wyndham brand to the country. The lodging company has inked an exclusive development agreement with NILE Hospitality LLP, the third-party developer and operator, to launch Wyndham’s economy hotel brand Microtel, making it the eighth Wyndham brand to debut in India.
The partnership will leverage Wyndham’s global presence and NILE’s experience in India to open 40 Microtel hotels by 2031. All these properties will be direct franchisees of Wyndham and part of the company’s ambitious growth strategy.
The Microtel hotels will mostly be located in key tier II, III and IV cities, aligning with India’s infrastructure development cycle. The first set of hotels are expected to open in 2025. Each hotel will feature 50 rooms along with fitness centers and meeting and social spaces.
“By introducing Microtel, we’ll be able to propel development in a robust domestic market while further tapping into the scale and resources of the world’s largest hotel franchisor. It’s an ideal match and reflection of our shared ambition to grow and build together,” said Vikram Singh Chauhan, founder and CEO of NILE Hospitality.
While NILE will not own the hotels, it will support in the operation of some of the properties.
The agreement helps Wyndham cement its expansion in India, where it currently has 60 open hotels and anticipates to grow by at least 25% in the next 18 months.
Thanks to the “incredible opportunity” in India, Wyndham is focusing its strategic efforts on launching more brands in the country, said Dimitris Manikis, president EMEA, Wyndham Hotels & Resorts. Microtel is an ideal example of a brand that can be purpose-built for the market, he added.
India’s hotel industry has been witnessing a period of robust growth, with several hotel companies tapping into the potential of the country’s diverse landscape and the burgeoning middle class and their eagerness to spend on travel.
Marking its return to the Indian market, Thailand-based Dusit Hotels and Resorts, under Dusit International, announced the soft opening of a hotel in north India. dusitD2 Fagu, the luxury retreat, is slated to open this December amid the mountains of Fagu, near Shimla, Himachal Pradesh.
Surrounded by the Himalayan landscape, the hotel has 80 rooms, ranging from 38 square meters to 86 square meters, each offering views of the valleys and mountains. Bringing its traditional Thai hospitality to the Himalayan region, the hotel will feature Namm’s Thai spa along with a temperature-controlled pool with views of the valley. dusitD2 Fagu will include dining venues, an amphitheater, function spaces and EV charging stations.
“We are delighted to bring Dusit International’s signature Thai hospitality back to India with the upcoming launch of dusitD2 Fagu. This opening is a major milestone in our expansion,” said Giles Cretallaz, COO of Dusit International.
The Thai hospitality company currently manages a collection of luxury villas in Goa though its subsidiary Elite Havens and will be opening four more hotels in Karnataka in southern India in 2026.
Hotel investment in India has been witnessing an impressive surge in the past few years. In 2023, hotel investment volumes saw a four-fold jump from 2022 to stand at $401 million, according to JLL’s research. Between January to June 2024, six deals translated into transaction volumes amounting to $93 million, revealed latest data by JLL.
The upscale segment saw the highest share of the total transaction volume (44%), followed by midscale (31%), luxury (23%) and the economy segments (3%).
Tier I markets across the country remained a stronghold for hotel investments, constituting 78% of the anticipated transaction volume for the rest of the year, followed by tier II and III cities (with 22% of the transacted volume). In terms of number of keys, 83% of the branded hotel signings were concentrated in Tier II and III cities.
In H2 2024, hotel transaction volume is projected to amount to $413 million, climbing by 22% YOY over 2023 figures.