IHG Hotels & Resorts has entered a management agreement with Hotel Chetan International to develop two new hotels in Bengaluru, India.

The hotels under the Crowne Plaza and Holiday Inn Express brands will be developed at the KIADB Aerospace Park. This will add more than 420 rooms to IHG’s portfolio in India.

Both hotels are scheduled to open in the first quarter of 2028.

Situated in Bengaluru’s industrial and aerospace parks, near Kempegowda International Airport, the hotels aim to attract clients from aerospace and technology companies, Global Capability Centres (GCCs) and corporates.

According to IHG, the proximity to the upcoming BCCI Centre of Excellence and National Cricket Academy will further enhance the location’s appeal for business, leisure and MICE segments.

IHG Hotels & Resorts South West Asia managing director Sudeep Jain said: “We are delighted to strengthen our presence in Bengaluru with the addition of two strategically located hotels in the thriving KIADB Aerospace Park.

“The presence of leading aerospace and technology companies, coupled with the upcoming BCCI Centre of Excellence, makes this location a key demand generator across business, leisure, and social segments. With the introduction of Crowne Plaza and Holiday Inn Express in this hub, we are confident of catering to a wide spectrum of travellers seeking both premium experiences and smart, convenient stays.”

The 210-key Crowne Plaza hotel will have four dining venues, including an all-day dining restaurant, a restaurant, a pool bar and a lobby lounge. 

The hotel will also feature various meeting spaces across four venues, including a ballroom for weddings, conferences and social gatherings.

The 210-key Holiday Inn Express hotel will provide a fitness centre and parking spaces.

Hotel Chetan International managing partner HC Byregowda said: “The strategic location, coupled with IHG’s strong global systems and the IHG One Rewards loyalty programme, gives us great confidence in the success of these hotels. Together, we aim to deliver high-quality hospitality experiences that will cater to both domestic and international travellers.”

Last month, IHG entered a management agreement with Hotel Eastern Nepal to open a new Holiday Inn Express & Suites in Dhulabari, Nepal.

The US hotel industry faces a challenging year ahead, with forecasts indicating zero revenue growth for 2025.

Analysts from CoStar and Tourism Economics have revised their projections, now expecting a slight 0.1% decline in revenue per available room (RevPAR) for the year.

This adjustment reflects a convergence of economic pressures and shifting travel behaviours.

Economic pressures Impacting hotel performance

Several economic factors are contributing to the subdued outlook for the hotel industry. The U.S. economy is projected to grow at a modest rate of 1.5% in 2025, down from previous forecasts of 1.9%.

This slowdown is attributed to persistent inflationary pressures, with the Consumer Price Index (CPI) expected to rise by 2.9% in 2025, impacting consumer spending and travel budgets.

High interest rates continue to affect both consumer and business spending.

While the Federal Reserve’s recent rate cuts may provide some relief, the cumulative effect of elevated borrowing costs over the past year has dampened investment and discretionary spending, including travel.

Shifts in travel demand and consumer behaviour

The hotel industry is witnessing a shift in travel demand, with luxury and upscale properties outperforming their midscale counterparts.

High-income travellers are maintaining their travel habits, opting for premium accommodations, while midscale hotels are experiencing declining demand and narrower profit margins.

Corporate travel, a significant revenue stream for hotels, remains below pre-pandemic levels. The rise of remote work and virtual meetings has reduced the need for business travel, impacting occupancy rates and group bookings.

In Washington, D.C., for instance, the deployment of National Guard troops in August 2025 led to a noticeable decline in tourist activity, including hotel occupancy, as visitors perceived the city as less safe.

Outlook for 2026 and beyond

Looking ahead, the hotel industry anticipates a modest recovery in 2026, with projections indicating a 0.8% increase in RevPAR. This optimism is based on expectations of improved economic conditions, including stronger GDP growth and a stabilisation of inflation rates.

However, the pace of recovery remains uncertain, influenced by factors such as geopolitical events, changes in consumer confidence, and the evolving landscape of travel preferences.

Hotels will need to adapt to these dynamics, focusing on enhancing guest experiences and operational efficiencies to navigate the challenges ahead.

Ultimately, while the U.S. hotel industry faces a challenging 2025 with zero revenue growth projections, strategic adaptations and a focus on high-end market segments may provide avenues for resilience and future growth.

Foo opens in Gourmet Village at Phoenix Palladium, Mumbai. With its bold Pan-Asian flavours and inventive small plates, Foo has evolved from a neighbourhood favourite into one of the city’s most recognisable dining destinations—equally at home hosting business lunches, family dinners, after-work drinks, or lively group celebrations. Its winning formula lies in pairing consistency with creativity, delivering experiences that feel familiar yet never predictable.

The Phoenix Palladium outpost reimagines Foo as Foo 2.0—a playful yet refined take on Asian modernity. Designed by Sarah Sham, the space flows organically, encouraging exploration while balancing pop hues with warm neutrals, sculptural lighting, and layered textures.

With 126 covers, the restaurant offers diverse seating: intimate two-seaters, patterned banquettes, pod-style booths lit with brass-accented lanterns, high tables, and a Private Dining Room. Thoughtful zoning through design and flooring creates distinct moods, from cosy nooks to lively communal spaces.

The new menu features dishes created just for this location, such as Spicy Tropical Salad – lettuce, avocado, yam bean, grapefruit, orange, spicy sesame dressing, Fiery Cottage Cheese Maki – Vegetarian roll with takuan, avocado, sriracha, Spicy Chicken Maki – scallion, cream cheese, fiery Thai sauce, Peking Wontons & Prawns Wontons – zucchini, pok choy, water chestnut in chilli sauce, rolled duck pancakes – with plum, mustard, and chilli oil sauces.

Guests will still find bestsellers like the Truffle Togarashi Black Rice Maki, Spicy Tuna Maki, indulgent dumplings such as Wasabi Truffle Edamame and Sriracha Chicken, big plates like the Foo Yellow Curry and Foo Blue Butter Fried Rice, and the dramatic Mount Foo-ji dessert platter.

Speaking about the launch, brothers Keenan Tham & Ryan Tham, Founders of Pebble Street Hospitality, share “Foo Phoenix Palladium is our vision of what Foo 2.0 looks and feels like. It’s a natural evolution of the brand, more immersive, more expressive, and designed for a new generation of diners. We’ve kept everything people love about Foo, but reimagined the experience to feel bolder, more dynamic, and unmistakably fresh.”

The bar debuts an exclusive cocktail menu for Phoenix Palladium, featuring: Yuzu T&T – tequila, cucumber, yuzu, basil, TNT- tequila, grapefruit, jalapeño shrub, sea salt, Fiery Espresso – vodka, caramel coffee reduction, chilli tincture, kumquat marmalade, Coco Rise – rum, coconut, Aperol, yuzu, lemon, Tropical G&T – gin, mace, pineapple, honey shrub (upgrade to Monkey 47 available), Sakura G&T – pink gin, rosella, elderflower, rose.