Royal Orchid Plans 50 New Hotels as Domestic Travel Demand Surges

Indian hospitality chain Royal Orchid Hotels plans to add at least 50 new properties over the next 12 to 18 months, betting on strong domestic tourism demand. The company believes rising travel costs, geopolitical uncertainties, and a weaker rupee are encouraging more Indians to choose local destinations over international holidays.

The Bengaluru-based hotel operator currently manages around 120 hotels and aims to increase its room inventory from 8,000 to approximately 11,000 by the end of 2027. According to Chairman Chander Baljee, demand has been supported by travelers cancelling overseas trips, particularly to regions affected by geopolitical tensions, and opting for domestic vacations instead.

Royal Orchid expects growth to be driven by religious tourism, business travel, and large-scale events. Operating through an asset-light model focused on management contracts and franchising, the company plans to expand rapidly across metro cities, smaller towns, leisure destinations, and pilgrimage centers, while keeping India as its primary growth market.