“We have a very strong pipeline of hotels. New constructions are important because they help us build the reputation of the brand, and there is a focus on quality over quantity, and we will be moving away from being known primarily as a “conversion” hotel brand here,” Cuculic said.
The company, which has 32 hotels in India, Bangladesh, and Sri Lanka combined, operates in partnership with Delhi-based Sorrel Hospitality Pvt. Ltd, which it signed on in 2016 when the company had about seven hotels here.
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Despite the slow growth in the last decade or so here, Cuculic said the next phase of expansion will target secondary markets, driven by improved infrastructure and growing demand for events like weddings. While leisure travel has led the post-pandemic recovery, he sees business travel as a future growth driver for BWH Hotels in India.
“International business travel has not returned to India the way it was during the pre-pandemic levels. But we are now betting on infrastructure improvements, including new highways and railway network expansions, to drive business travel to secondary markets too, that’s where the next wave of hotel development will come,” he said.
The company has signed 54 hotels and inked another five MOUs with potential owners. He confirmed that the supply pipeline will take the hotel company to 100 hotels in 5-7 years.
Of the 28 operational hotels in India, the company will open five more this year and the rest subsequently. Collectively, the hotels it manages generate about ₹250 crore in revenue. It will also launch its Aiden hotel in Amritsar in the coming months.
Demand for hotels outpacing supply
The demand for hotel accommodation is outpacing new construction in the country, a trend Cuculic expects to continue. “This benefits existing properties by driving occupancy and rates, too. With strong population growth, rising middle-class investment, and significant infrastructure development in India, the hotel market will expand well beyond the next five years. It is a tremendous growth opportunity,” he added.
The company’s interest in India makes sense. Last month, other top hospitality executives, including Wyndham Hotels’ chief executive Geoffrey A. Ballotti and Marriott International’s president and CEO Anthony Capuano, visited India, reflecting the industry’s growing focus on the country’s expanding hotel market. With the government’s push for infrastructure development, global hotel chains see significant potential in meeting the rising demand for quality, affordable accommodation.
The push on infrastructure, like new highways and transportation networks improving connectivity, creates ample opportunity to expand into several underserved regions. According to industry data, India is expected to add about 100,000 rooms to its current 200,000 branded room inventory by 2029.
India’s full-service model
BWH’s strategy in India differs significantly from its approach in the US, where it is traditionally known for limited-service properties. In India, even its mid-market hotels offer full-service amenities, including food and beverage outlets, banquet halls, and meeting spaces. “Our hotels in the US are typically limited service. This adaptation caters to local market preferences, where event-driven revenue streams like weddings are the key to success,” he added.
BWH Hotels has set an ambitious target of reaching 5,150 hotels globally within five years from the current 4,300. Achieving this goal requires growth across all 18 brands, including legacy offerings like Best Western and Best Western Plus and newer luxury and boutique segments.
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“Some brands will grow faster than others, but with 78 years of history behind us, we are committed to expanding across every category. Out of our 18 brands, we have six in India and will be adding the ‘WorldHotels’ brand soon. This is driven by strong average occupancy levels of 70%,” Cuculic said.
The company is also expanding its management operations in key international markets. While the company does not manage properties in North America, about 50% of its hotels in India are under management contracts. Managed hotels are operated directly by the hotel company, as they handle day-to-day operations, while franchised hotels are owned by independent property owners who simply run the hotels under a particular hotel brand’s guidelines.
This trend of management—something the company did not do in key markets—is gaining momentum across Asia, with growing investor demand for experienced hotel operators. “We recently found success in Saudi Arabia, where there is a strong push for us to manage hotels, too, and we see this model expanding across the Asia-Pacific region,” Cuculic said.
