ITC Hotels, which has a target to cross 220 hotels by 2030 in India, expects its brands under the upper upscale segment and mid-scale segment to grow at a faster pace compared to its luxury brands, like ITC Hotels and Mementos. 

"Luxury (segment) is not going to be fast-paced because the opportunities are very limited," Anil Chadha, Managing Director of ITC Hotels, told the media on the side-lines of 'The Branded Residences Summit' in Mumbai. "Everybody wants a luxury tag, but they (hotels) don't have a product to match the luxury tag...Tier II, I1l cities want an ITC hotel, but there is no propensity to pay (in that market)."

ITC Hotels, which recently demerged from ITC, currently has Storii in the boutique premium segment, Welcomhotel in the upper upscale category, Fortune in the midscale segment, and WelcomHeritage in the heritage leisure space.

"Metros like Mumbai, Delhi, Bengaluru, and Hyderabad are booming markets right now and have great opportunities and room to grow (for the Luxury segment). For us at least, it (growth) is happening in the upper-upscale segment, mid-scale segment, and the experience brand Storii, where we have opened seven Storii hotels and have 12 in the pipeline."

According to the company's investor presentation, ITC Hotels has 18 operational hotels under its luxury segment, with only two hotels in the pipeline through its Mementos brand, as of June 30. In comparison, through Welcomhotel, it has 27 operating hotels and 17 under the pipeline. Apart from this, it has 57 operational Fortune branded hotels with 24 under the pipeline. Overall, ITC Hotels has 143 operational hotels, as of June.