IHG, SAMHI Hotels announce opening of new Holiday Inn Express hotel in Kolkata, eye deeper push into East

The new 113-room property, owned by SAMHI Hotels and managed by IHG Hotels, is the 18th Holiday Inn Express to open in India. 

Located in the buzzing New Town area of Rajarhat, known for its IT and business hubs, the new hotel promises a hassle-free stay, making travel smart and simple.

Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, and Ashish Jakhanwala, Chairman, Managing Director & CEO of SAMHI Hotels announced the launch at a roundtable here on Thursday.

Holiday Inn Express is IHG's largest and fastest-growing brand worldwide, with over 3,200 hotels open and 644 more on the way, they said.

Kolkata’s revival and investment potential

IHG’s leadership believes Kolkata, as a key gateway to East and Northeast India, offers stable hotel performance and consistent growth trends, even if it doesn't always make headlines, stated Sudeep Jain, Managing Director for South Asia at IHG Hotels and Resorts.

"The opening of th new Holiday Inn Express in Kolkata marks a significant milestone for IHG Hotels & Resorts, underlining its confidence in the city's long-term hospitality potential," he said.

Jain said that while the company has over 300 hotels in China, India—being the world’s third-largest domestic travel market—holds the potential for many more. He added that Kolkata alone could support up to 20 Holiday Inn Express locations, including in suburban areas, given the opportunities available for this and other IHG brands.

Sudeep Jain, the Managing Director of South West Asia, IHG Hotels & Resorts. Photo: Arpita Das

"Kolkata is one of India’s original metropolitan cities, and industry leaders believe it’s only a matter of time before that status is fully restored—not just in name, but in terms of real business potential," said Jakhanwala, the CEO of SAMHI Hotels.

Kolkata’s micro-markets—Downtown, Salt Lake, and the Airport zone—can each accommodate various hotel categories from midscale to upscale. While capital-intensive models like theirs do not follow fixed expansion timelines, the company reaffirmed its intention to grow significantly in Kolkata and the eastern region.

He stated that the rising air connectivity is a strong indicator of underlying hospitality demand and a compelling reason to invest in more accommodations.

"Every aircraft that lands in a city brings along passengers who eventually find their way to a hotel lobby. With Kolkata’s airport witnessing steady growth in passenger numbers each year, the city’s need for additional hotel rooms will only increase," Jakhanwala underscored.

Commenting on SAHMI's investment in Kolkata, he said, "The decision to invest in Kolkata was driven by two key factors: the growth of the airline sector and the performance of the city’s airport. This hotel also marks our first hotel in the Eastern part of India and an established market like Kolkata.”

Ashish Jakhanwala, the Chairman, Managing Director & CEO of SAMHI Hotels. Photo: Arpita Das

Kolkata consistently features among the top five or six in terms of airport rankings by passenger traffic. "For us, it’s absolutely important to deploy capital in markets with strong fundamentals—both present and future,” he said, underscoring the reason behind the investment.

This strategic airport connectivity made Kolkata a natural choice for their first property in the city, he said, adding that this latest launch reflects IHG’s broader vision to tap into India’s rising middle-class travel demand, increased air connectivity, and the growing presence of institutional capital in the country’s hospitality sector.

Policy reforms and economic impact

Jakhanwala, highlighting the regulatory challenges faced by India’s hospitality sector, said, "Developers often require over 75 licenses to open a hotel—many of which vary across states and cities due to tourism being a state subject.

"However, there are encouraging signs of progress: some state governments are now offering incentives like capital subsidies, tax waivers, or reduced licensing hurdles to encourage hotel development.

"Industry leaders argue that removing such bottlenecks could drastically accelerate project timelines and unlock the sector’s full growth potential," he said.

Delays in completing hotel projects can seriously affect returns, as each non-operational month means lost growth for the sector, he noted.

While such hurdles are common across most Indian states, he emphasised the need for coordinated policymaking between the Centre and states to streamline regulations and encourage investment.

Asserting the role of hotels in employment generation, Sudeep Jain highlighted their multiplier effect across sectors—creating jobs in skilled and unskilled labour, construction, food supply chains, and vocational training.

IHG presently operates 52 hotels in India under six different brands, such as Six Senses, InterContinental, Crowne Plaza, Holiday Inn, and Holiday Inn Express.

Jain mentioned that the company is eager to secure management contracts in smaller cities across Bengal, including Siliguri, Durgapur, Santiniketan, Digha, and Darjeeling.