Minimalist Hotels Plans Major Expansion Amid Growing Indian Tourism Market
Minimalist Hotels is set to significantly expand its footprint, aiming to redefine the lifestyle hotel experience by combining minimalist aesthetics with functional design and local cultural elements. “Our vision is to blend minimalism with design, functionality, and local culture informed by global sensibilities,” said Munjal, the company’s founder. “With tourism on the rise, we see a clear opportunity to offer curated hospitality experiences that emphasize comfort, authenticity, and connection.”
Currently operating across 200,000 square feet, Minimalist Hotels plans to add an additional 700,000 square feet, bringing its total portfolio to around 1 million square feet.
This expansion aligns with the projected growth of India’s hotel industry, which is expected to increase from $15.67 billion in 2024 to $22.41 billion by 2030, reflecting a compound annual growth rate (CAGR) of 9.32 percent, according to a Research and Markets report cited by the company. Boutique and mid-scale lifestyle hotels in tier 1 and tier 2 cities are anticipated to be key drivers of this growth, fueled by rising domestic tourism, increased disposable income, and the growing popularity of “bleisure” travel — a blend of business and leisure.
To support its expansion, Minimalist Hotels plans to invest in operational systems and a centralized corporate structure. All new properties will feature the brand’s signature Japandi design style, a fusion of Japanese and Scandinavian aesthetics.
Over the past seven years, the company has hosted more than 150,000 guests. Approximately half of its staff are hired locally, reinforcing the brand’s commitment to regional employment and community engagement. In addition to accommodations, the brand offers lifestyle-focused amenities such as DJ nights, coffee raves, fitness run clubs, and co-working spaces, catering to the evolving preferences of modern travelers.
Minimalist Hotels competes with brands like Bloom Hotels, FabHotels, and Nuo by Justa in the hotel segment, and with Zostel, GoStops, and The Hosteller in the hostel market, according to Mint.
In the 2023–24 fiscal year, the company reported revenue of Rs 7.4 crore (approximately $8.9 million), a 7 percent increase from the previous year. However, net profit declined to Rs 2.2 crore (about $2.6 million) from Rs 4.2 crore (around $5 million) in 2022–23. Munjal told Mint in January that the company is targeting operational revenue of Rs 12 crore (about $14.4 million) for 2024–25.
Looking ahead, the company aims to grow its revenue fivefold within two years and expand its portfolio to approximately 120 rooms, with 90 percent dedicated to private rooms and 10 percent to dormitory accommodations. The brand primarily attracts millennial and Gen Z travelers and recently opened its second hotel in Varanasi in December.
However, the broader hospitality sector in India has faced recent challenges. Following “Operation Sindoor,” India’s response to the April 22 terrorist attack in Pahalgam, more than half of hotel bookings in major cities were reportedly canceled.
Source: asianhospitality.com