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Skift Take
Spark hits the sweet spot for Indians seeking the reliability of branded stays without stretching their budgets. Hilton’s plan to open 150 hotels in India might sound ambitious, but a conversion-friendly approach means the company will likely hit that milestone faster than expected.
Peden Doma Bhutia
Hilton Hotels is bringing its latest premium economy brand, Spark by Hilton, to India. The launch also marks Spark’s debut in the Asia-Pacific region.
Hilton plans to open 150 Spark hotels across India, starting in Maharashtra, Andhra Pradesh, Telangana, Goa, Karnataka and Tamil Nadu, as it aims to tap into the fast-growing mid-market segment across major and emerging cities in the country.
“Spark by Hilton will address a gap in the Indian market, offering affordable stays without compromise and capturing unmet demand for value and consistency across major and smaller cities,” said Alan Watts, president of Hilton Asia Pacific.
The rollout will be in partnership with India’s Embassy Group, owners of Hilton Bengaluru Embassy Manyata Business Park and Hilton Garden Inn Bengaluru Embassy Manyata Business Park.
Spark: Hilton’s “Disruptive” Force
Positioned in the $80–$100 per night category, Spark by Hilton was announced in January last year with 100 hotels at various stages of development, making it the fastest brand launch in Hilton’s history.
Speaking at the Skift Global Forum last year, CEO Chris Nassetta had described the conversion-friendly, premium economy brand as “not our sexiest, but the most disruptive,” stressing its potential to serve millions of value-conscious travelers.
Emphasizing Spark’s strategic role as a feeder for Hilton’s more luxurious brands, Nasseta said, “Young travelers starting with Spark will eventually graduate to brands like LXR and Waldorf Astoria.”
Speaking at Hilton’s latest earnings call last month, Nassetta said more than 20 Spark hotels have opened in the third quarter and now there are over 6,000 Spark rooms in supply just a year after the brand opened its first property.
With hotels in the U.S., U.K. and Canada, Hilton recently announced plans to open Spark hotels in Germany and Austria before the end of the year.
“The brand’s pipeline is three times larger than its existing supply, and we expect continued launches in international markets to further boost Spark’s trajectory, positioning us well for future growth in the premium economy space,” Nassetta said in the earnings call.
The India Market for Hilton
India’s burgeoning middle class, infrastructure growth, and rising travel demand make it a prime market for Spark’s introduction. Kevin Jacobs, Hilton’s chief financial officer and global development president, highlighted the region’s long-term potential: “Rapid middle-class formation continues across South Asia, offering tremendous growth prospects for Hilton.”
Hilton’s expansion in India aligns with the country’s broader hospitality boom, supported by government investments in tourism infrastructure and a growing appetite for domestic and international travel. In 2024, Hilton expanded its portfolio in South Asia with openings in Nepal and new properties in India’s Surat, Jabalpur and Gurugram.
The debut of Spark in India is part of Hilton’s larger push into India. During the latest earnings call, Nasseta said that while revenue per available room (RevPar) was down by 3% year-over year in the third quarter in Asia Pacific, RevPAR in APAC excluding China increased 4%, led by strong performance in India.
Hilton is also introducing luxury brands like Waldorf Astoria and Curio Collection in South Asia with the Waldorf Astoria Jaipur, which is expected to open by 2027. And there are the Hilton flagship properties coming up in Udaipur and Lucknow reflecting Hilton’s commitment to Tier II and III cities, across market segments.
Spark’s entry into India signals Hilton’s confidence in the premium economy segment, an area traditionally dominated by local and independent operators.
As Nassetta said at SGF last year, “The biggest segment of demand is economy. We hadn’t figured out how to do it and afford to have the service levels we needed. Now, we figured it out. We figured out how to touch every element of the customer-facing experience.”
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