InterContinental Hotels Group (IHG) is strategically expanding its presence in India’s luxury hospitality sector by introducing its Vignette Collection brand through a conversion project near Chandigarh. The move reflects a growing trend of hotel groups leveraging existing properties to accelerate growth in key markets.
Conversion Strategy & Market Dynamics
The Vignette Collection, IHG’s luxury, collection-style brand, will debut in India with a 145-room hotel in Panchkula, undergoing renovation from an existing Holiday Inn property. The conversion is anticipated to complete in early 2024. This approach minimizes development time and capital expenditure, making it an attractive option for owners seeking to elevate their properties without full-scale construction.
IHG’s managing director for South West Asia, Sudeep Jain, highlighted that improved infrastructure and increased financing options are streamlining project timelines in India. This means hotels can move from contract signing to operational status faster than before.
Vignette Collection: A Growing Trend in Luxury Hospitality
Vignette Collection is designed for distinctive, characterful properties that benefit from brand recognition without sacrificing individual identity. The brand’s collection-oriented model allows owners to tap into luxury positioning at a lower cost compared to building from the ground up.
The shift towards conversion projects, rather than new builds, is driven by several factors:
- Cost Efficiency : Renovating existing properties is typically cheaper than starting from scratch.
- Faster Time to Market : Conversions bypass lengthy construction phases, allowing for quicker revenue generation.
- Sustainability : Utilizing existing structures aligns with growing environmental concerns within the hospitality industry.
The Vignette Collection represents a smart, adaptive strategy for luxury hotel expansion in a dynamic market like India. By converting existing assets, IHG is capitalizing on efficiency while maintaining brand standards and guest expectations.
IHG’s move signals a broader industry trend: luxury brands increasingly prioritizing conversion projects to accelerate growth in competitive markets. The Vignette Collection’s debut in India underscores this shift, offering a compelling alternative for owners and investors alike.
