Eco Hotels targets 1,000 rooms by 2027 as it doubles down on India’s fast-growing midmarket segment

Eco Hotels & Resorts Limited is targeting 1,000 rooms in India by March 2027 as it expands its presence in the midmarket hospitality segment, with five operational properties and a near-term plan to scale to 10 hotels by June, according to company leadership.

The company is positioning itself to capture demand from smaller cities and emerging destinations, where improved connectivity and rising consumer aspirations are driving growth in travel and accommodation demand beyond traditional metro markets.

Midmarket segment drives expansion strategy

Eco Hotels has aligned its growth strategy with the midmarket and budget segments, which the company identifies as the primary drivers of expansion in India’s hospitality sector. The focus reflects a shift in demand patterns, where affordability, consistency and scalability are becoming key factors in hotel development.

According to Chairman Vinod Kumar Tripathi, growth in hospitality is no longer concentrated in luxury segments or major urban centres. Instead, demand is emerging across a wider geography, supported by increasing travel frequency among domestic consumers.

The company’s approach prioritises value-driven offerings that balance pricing with standardised service delivery, targeting travellers who seek reliable accommodation across different price points.

Expansion beyond metro markets gains traction

Eco Hotels currently operates five properties in Kochi, Kota, Baroda, Varanasi and Ayodhya, reflecting its focus on non-metro locations. These markets are benefiting from infrastructure development, including improved road networks, new airports and enhanced connectivity, which are reducing travel barriers and opening new hospitality opportunities.

The company does not rely on conventional city classifications such as Tier II or Tier III for expansion decisions. Instead, it evaluates markets based on demand-supply dynamics, identifying locations where demand for organised accommodation exceeds current supply.

This approach has enabled the company to target destinations that are transitioning into viable hospitality markets due to rising economic activity and tourism inflows.

Operational model emphasises consistency and guest experience

Eco Hotels is focusing on delivering standardised guest experiences across its portfolio, particularly in a fragmented midmarket segment where service quality can vary widely. The company has implemented uniform operational benchmarks across properties, covering aspects such as room comfort, cleanliness and service efficiency.

The brand’s portfolio includes multiple offerings—The Eco, EcoXpress and EcoValue—designed to cater to different price segments while maintaining consistent service standards. This structure allows the company to expand across varied markets without diluting its core identity.

Operational strategies also emphasise guest-centric practices, including flexibility in service delivery and direct engagement between management and guests to address expectations and feedback.

Sustainability and construction technology integrated into growth

Sustainability forms a key component of Eco Hotels’ development strategy, with initiatives aimed at reducing environmental impact across construction and operations. The company is adopting 3D volumetric construction technology to accelerate project timelines and improve cost efficiency.

Using this approach, Eco Hotels estimates it can build a 100-room property in approximately 24 weeks. The method is also intended to reduce material wastage and provide greater predictability in project execution, which is particularly relevant for investors and developers.

In addition to construction innovations, the company is exploring smart systems for monitoring building performance and enabling predictive maintenance, aimed at improving operational efficiency over the long term.

Pipeline targets 5,000 rooms in five years

Eco Hotels has outlined a multi-stage expansion plan, with a target of reaching 1,000 rooms by March 2027. Beyond this, the company aims to scale to 5,000 rooms over the next five years and between 10,000 and 15,000 rooms over the next decade.

To support this growth, the company is also strengthening its organisational infrastructure. Plans include the development of a dedicated sales and marketing vertical, which may operate as a standalone entity, as well as the establishment of a hospitality management institute to address workforce requirements.

Manpower development is identified as a critical factor for sustained growth, particularly as the hospitality sector expands into new markets and requires trained professionals to maintain service standards.

Eco Hotels’ expansion strategy reflects broader industry trends, where rising domestic travel demand, infrastructure upgrades and shifting consumer preferences are driving hotel development in emerging destinations. The company’s focus on midmarket offerings positions it to tap into this evolving demand landscape as India’s hospitality sector continues to diversify geographically and operationally.