Expansion strategies are increasingly focused on asset light models: FHRAI
Mr. Surendra Kumar Jaiswal, President of Federation of Hotel & Restaurant Associations of India (FHRAI), says India’s hospitality sector is gearing up for measured and strategic expansion in 2026, driven by robust domestic demand and a visible recovery in global travel. Key Insight - The Indian hospitality sector is gearing up for measured and strategic expansion in 2026, driven by strong domestic demand and recovery in global travel. - Expansion strategies are increasingly focused on asset-light models such as management contracts and franchising, which allow brands to scale efficiently while limiting balance-sheet risk. Strategic Shifts - Clear pivot towards: - Mid-scale hotels - Experiential and lifestyle-led properties - Wellness tourism offerings - MICE (Meetings, Incentives, Conferences, Exhibitions) destinations Supporting Factors - Sustainability initiatives, technology adoption, and workforce skilling are now central to long-term planning, not optional add-ons. - Improved access to finance and enabling policy measures could drive steady, geographically diversified growth across India’s hospitality sector in 2026. This reflects a broader global trend: hospitality brands are moving away from heavy asset ownership and instead leveraging partnership-driven growth models to remain agile and resilient.
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