Hilton signed a master-franchise agreement with Regenta Hotels & Resorts, a division of Royal Orchid Hotels, to sign and open 125 Hampton by Hilton hotels in India.
The deal “supercharges” Hilton’s upper-midscale growth across the country, according to a Hilton news release.
The hotels primarily will be in Western and Southern India, including assets in the Indian provinces of Andhra Pradesh, Goa, Karnataka, Maharashtra, Tamil Nadu and Telangana.
The guest focus is India’s growing middle class.
“Our portfolio is a healthy mix of owned, managed and franchised properties, and this partnership with Hilton will drive significant growth in the country’s mid-market hospitality segment," Chander Baljee, founder, chairman and managing director, Royal Orchid Group, said.
Arjun Baljee, Royal Orchid Group's president and Chander’s son, added: “Partnering with Hilton to bring 125 Hampton properties to life is a strategic leap in our 50-year journey. It complements our ethos of bolstering India’s mid-market segment with hotels that deliver great value, service efficiency and thoughtful design.”
Bengaluru-based Royal Orchid has two hotel divisions, Regenta and Royal Orchid Hotels, with a combined portfolio of more than 100 hotels, mostly in India but also in Nepal and Sri Lanka.
Regenta has various subdivisions: Regenta, Regenta Central, Regenta Inn, Regenta Place, Regenta Resort, and Regenta Suites. Segmentation for Regenta's hotels ranges between economy and upscale.
Across its two parent brands, it both owns and operates hotels and operates them on behalf of other owners.
At the end of January, according to the Economic Times of India, Royal Orchid Hotels sold a subsidiary, Multi Hotels, to Dar es Salaam, Tanzania-based owner Greenleaf Properties.
The $3.41 million deal, according to Royal Orchid, will permit it to focus on core assets and strengthen its balance sheet.
“Multi Hotels Limited had not commenced commercial operations," the Economic Times of India reported.
Hilton has more than 9,100 hotels and more than 1.3 million rooms in 143 countries.