Sarovar Hotels Targets 400 Properties, 10,000 Jobs Expansion Across India Over Five Years

Sarovar Hotels has outlined a five-year expansion plan to grow its portfolio to 400 properties across India while generating more than 10,000 additional jobs, as the company scales its presence in the mid-market hospitality segment through an asset-light strategy and a strong development pipeline.

Expansion pipeline targets 400 hotels portfolio

The company currently has approximately 250 hotels, including operational properties and those under development, representing a combined inventory of nearly 22,000 keys. Over the next 36 months, Sarovar Hotels expects to increase its operational base to more than 210 hotels, supported by an additional pipeline of 100 to 120 properties.

For 2026, the company is targeting around 20 new hotel openings, which is projected to take its operational portfolio to about 170 hotels by the end of the year. This phased expansion is part of a broader roadmap to significantly scale its footprint over the next five years.

The growth trajectory reflects a structured approach to expansion, with a focus on increasing both geographic reach and room inventory across key markets in India.

Revenue growth supported by portfolio performance

Sarovar Hotels is projecting strong financial growth alongside its expansion. The company expects to report revenue of approximately ₹2,300 crore in 2026, compared to ₹1,991 crore in the previous year, indicating double-digit growth.

Operational performance has remained stable, with same-store growth reported at 5% and overall portfolio growth at 11.4% in the first quarter of the year. This performance underscores steady demand across its existing properties as well as contributions from newly added hotels.

The company’s growth outlook remains aligned with rising domestic travel demand and increasing occupancy levels in key markets.

Asset-light model drives scalable growth

A central component of Sarovar Hotels’ expansion strategy is its asset-light model. Nearly 90% of its portfolio operates under management contracts, while the remaining properties are structured through franchise agreements.

The company owns a limited number of assets and has indicated that it does not intend to pursue large-scale capital investment in owned properties. Instead, it is focusing on partnerships with property owners and developers to expand its footprint efficiently.

This model enables faster scaling while maintaining operational control and brand consistency, reducing capital exposure while leveraging third-party investments for growth.

Focus on Tier II, Tier III and emerging destinations

Sarovar Hotels is prioritising expansion in Tier II and Tier III cities, along with pilgrimage destinations and emerging leisure markets. These regions are witnessing increasing demand for organised and branded hospitality, driven by domestic travel growth and improved infrastructure.

The company’s strategy aligns with shifting travel patterns in India, where demand is expanding beyond major metropolitan centres to smaller cities and religious tourism hubs.

By targeting these markets, Sarovar aims to strengthen its presence in underpenetrated regions while capturing new demand segments.

Workforce expansion and diversification into residences

Alongside its hotel expansion, Sarovar Hotels is also planning significant workforce growth. The company currently employs over 10,000 people and expects to create a similar number of additional jobs as new hotels become operational.

The increase in employment will be driven by the expansion of room inventory and the opening of new properties across multiple locations.

In addition to its core hotel business, Sarovar has entered the branded residences segment. Projects such as ACE HIVE in Greater Noida and The Element in Ghaziabad mark its diversification into residential hospitality offerings.

This move reflects a broader strategy to expand beyond traditional hotel operations and tap into adjacent segments within the real estate and hospitality ecosystem.

With a growing pipeline, asset-light expansion model, and focus on emerging markets, Sarovar Hotels is positioning itself to scale its operations significantly while aligning with evolving travel demand patterns across India.