More branded hotels in Tier III than Tier I, II cities

Around 39 per cent of branded hotel signings in 2018 were seen in Tier III cities, which was higher than that of Tier I cities (29 per cent) and Tier II cities (32 per cent), according to a recent HVS ANAROCK report. The report stated that rapid urbanisation in the country, is increasingly making Tier 3 markets more relevant in the eyes of the hotel brands, who are witnessing nearly a third of their new hotel signings emerge from them, despite hotels being much smaller than those located in Tier 1 markets. This is also happening on account of newer Hotel Management companies setting shop as also the smaller ones looking to grow rapidly through franchise or management agreement of smaller standalone hotels in Tier II and III cities.