India's mid-scale hotel market is poised for rapid growth, with 30% of players planning global expansion

• As India's mid-scale hotel market is growing with a 13% CAGR, Hotelogix white paper reveals that by 2030, large brands will dominate 75%-80% of mid-scale rooms. Additionally, by 2028, 6%-8% of mid-scale hotel brands will launch their IPO. 

Bangaluru/January/2026: Hotelogix, a globally leading provider of cloud-based hospitality solutions, has released its second white paper, “India’s thriving domestic mid-scale hotel brands – Redefining the industry with Consolidation and Collaboration, International Expansion, and Technology Adoption”. The white paper follows the successful completion of the 2nd edition of Hotelogix & AxisRooms Connect, the only industry event dedicated exclusively to domestic mid-scale hotel brands.

"India’s mid-scale hotel brands, representing about 60% of the country’s total branded rooms, are leveraging local insights and agile business models to capture new demand in emerging cities,” said Aditya Sanghi, CEO of Hotelogix.

Consolidation and collaboration

The white paper reveals that by 2030, large hotel brands (both Indian and international) are expected to control more than 75% to 80% of branded mid-scale rooms as they are actively acquiring or partnering with local 3-star and budget-plus hotel brands (refer to mid-scale brands) to bolster their presence in this rapidly growing sector.

Expressing his views on this trend, Aryavir Kumar, Managing Director, The Clarks Hotels & Resorts, said, “Consolidation will gather pace. More Indian mid-segment brands will sign up with large domestic and global chains. It will help both stakeholders stay relevant in this competitive industry."

International expansion

The white paper identifies that around 15-20 domestic mid-scale brands have ventured abroad since 2020, targeting the UAE, Nepal, and East Africa. More brands will expand globally to tap 30 million annual outbound Indian travellers by 2030. Brands like Lemon Tree and Royal Orchid Hotels Limited are already in Dubai and Sri Lanka, with more like Elivaas eyeing debuts soon via franchise models.

According to Anant Apurv Kumar, Founder of Brij Hotels, "By 2030, about 30% of India's mid-scale hotel brands will cross borders, transforming themselves into global ambassadors of authentic Indian hospitality."

Technology adoption

The white paper underscores a significant digital tipping point - nearly one in three mid-scale multi-property hotel brands have already embraced cloud-based platforms. By 2030, adoption is projected to surge past 60%-70%, unlocking centralised control, scalability, and AI-driven efficiencies that will redefine how India’s hospitality sector operates.

Jaideep Ahuja, Managing Director & CEO of Ahuja Residency, said, "Affordable, modern made in India cloud solutions now enable small brands like ours to digitise operations, making technology adoption much more accessible than before.”

IPO momentum

According to the white paper findings, around 5% of domestic mid-scale brands, such as Royal Orchid Hotels Ltd, Suba Group of Hotels, Grand Continent Hotels Ltd, Lemon Tree Hotels, etc., are currently listed. Trends suggest that an additional 6%-8% of them plan to pursue Initial Public Offerings (IPOs) over the next two years.

Expressing his views on this, Arjun Baljee, President of Royal Orchid Hotels Ltd, said, “Hospitality sector is buoyant across segments, and it will continue to see investment across asset classes. Growth-focused brands with asset light models will continue to attract capital.”

"Projections suggest that the mid-scale hotel segment in India will increase in value from approximately USD 3.75 billion in 2023 to USD 6.3 billion by 2030. This growth is being driven by the expansion of branded hotel chains, and supportive policies," stated Aditya Sanghi, CEO of Hotelogix. "We see an accelerated adoption of cloud solutions by these brands to operate with speed and accuracy.”

Download the white paper.

About Hotelogix

Hotelogix is a globally leading provider of cloud-based hospitality technology, offering industry-first Multi-property Management Systems, Hotel PMS, and Mobile PMS Apps for independent and hotel groups. It is trusted by 12,000+ hotels, including 250+ groups in 100+ countries. It powers around 400,000 hotel rooms in India through its full range of products, which includes the Cloud PMS under the Hotelogix name, and the distribution solutions provided by the AxisRooms, capturing roughly 15 percent or more of the total hotel room stock in the country. Hotelogix also powered the largest multi-property deployment of over 50,000 rooms across 500+ properties during FIFA 2022 in Qatar. Its distribution brand, AxisRooms, offers Channel Manager, Revenue Management Solutions, and Rate Shopper. Headquartered in Singapore, it has offices across the United States, India, the UAE, Thailand, and the Philippines.

For more information, visit www.hotelogix.com