Suba Hotels, established in 1994, is one of India’s leading domestic hotel chains in the mid-market sector. With 88 operational hotels across more than 50 cities as of July 2025, Suba Hotels provides diverse accommodations with 4,096 keys, focusing primarily on tier 2 and tier 3 cities. The hotel chain is expanding rapidly with 40 hotels in the pre-opening phase. Suba Hotels offers a mix of owned, managed, revenue share, lease, and franchised properties to cater to various market segments.

Business Model and Expansion

Suba Hotels operates in the mid-market hotel sector with upscale, upper-midscale, midscale, and economy brands. The company serves both business and leisure travelers and is expanding rapidly into under-served markets. The chain’s portfolio includes 5 owned hotels, 19 managed hotels, 16 revenue share & lease hotels, and 48 franchised hotels. This diverse model allows Suba Hotels to minimize capital expenditures while maximizing profitability.

Growth and Industry Insights

India’s hospitality industry is witnessing significant growth, especially in tier 2 and tier 3 cities. In 2024, tier 2 and 3 cities accounted for 77% of branded hotel signings, and Suba Hotels is capitalizing on this by expanding its footprint in these regions. Management contracts dominate the business model, and Suba Hotels’ strategic acquisitions, such as the acquisition of ‘1589 Hotels’ and becoming the master franchisee of Choice Hotels, have strengthened its position in the market.

Amalgamation and Future Plans

Suba Hotels has also gone through a scheme of amalgamation and demerger involving multiple entities, further consolidating its position in the market. The company is focused on expanding its portfolio with new signings and continuing to enhance its service offerings across India and internationally.

Competitive Strengths

i) Leading Hotel Chain: Suba Hotels is a major player in India, focusing on tier 2 and 3 cities with a flexible business model.
ii) Strategic Expansion: The company targets untapped markets with many hotels in emerging regions.
iii) Strong Distribution Network: Suba has a wide sales network and strong online presence.
iv) Acquisition & Renovation Expertise: Suba excels in revitalizing underperforming hotels through renovation and rebranding.