Accor chairman and CEO Sébastien Bazin believes that India has untapped potential in the hotel industry due to the country’s emerging middle class and demographic trends. With 25% of the emerging middle class in the past 10 years, Bazin sees India as a key player in the global economy. The middle class in India currently accounts for 31% of the population and is projected to reach 38% by 2031 and 60% by 2047. Bazin asserts that India is the fastest-growing country in the world and wants to lead the market by increasing the number of branded hotels in the country.
Accor currently has 62 operational hotels in India, with nine properties in the pipeline set to open this year. Highlighting the potential of the Indian market, Bazin notes that the top five hotel operators in India collectively have less than 1,000 hotels, compared to 25,000 in China. He believes that there is a demand for affordable accommodation from the emerging middle class in India, and the country needs more hotels to cater to this demand. Bazin challenges the industry to collectively increase the number of hotels in India from 1,000 to 15,000 without waiting for 15 years.
Bazin points out that out of the 1.4 billion people in India, 1 billion live in secondary and tertiary cities, making them the potential market area for hotel development. He suggests that hotels can be set up in these cities, but companies need to find families in each city willing to invest in the development. Bazin emphasizes the need for agility, adaptability, patience, and trust in order to achieve growth in the Indian market. He believes that ambitious goals are necessary, stating that anyone aiming to double their portfolio in five years lacks the ambition needed for the Indian market.
Overall, Bazin sees India as a key market with immense potential for growth in the hotel industry. With the country’s emerging middle class and demographic trends, there is a demand for affordable accommodation that needs to be addressed. Bazin challenges the industry to increase the number of branded hotels in India significantly in order to cater to this demand. By focusing on secondary and tertiary cities and being agile and ambitious, companies can tap into the untapped potential of the Indian market and achieve significant growth in the coming years.
