Brigade Hotel's IPO Filing Reveals a Changing Indian Market: What We Learned

India’s hotel market is witnessing a noticeable shift toward chain-affiliated properties thanks to a thriving travel sector and demand for reliable accommodation options.

A recent Draft Red Herring Prospectus (DRHP) filed by Brigade Hotel Ventures' throws light on this growing preference for brand-affiliated hotels that promise consistency, safety, and standardized service, as well as several other trends.

There are 192,000 chain-affiliated rooms in India as of June 2024, according to Horwath HTL India. This reflects a significant change from a sector once dominated by small, independent establishments, mostly operating in the midscale and budget segments.

The demand for chain-affiliated hotels has also surged, with daily room demand growing from 61,000 in 2015 to 116,000 by 2024.

Supply across all hotel segments is diversifying, with 34.8% of available rooms in the luxury and upper-upscale tiers, 38.6% in upscale and upper-midscale, and 26.7% in midscale and economy categories, according to Horwath HTL India.

The spread is widening geographica