Restaurant India News: Open Hotels Plans Rapid Expansion to 10,000 Keys with AI-Driven Model

Olive Hospitality, part of the Embassy Group hospitality portfolio, is planning a significant expansion through its AI-integrated hotel vertical, Open Hotels. The company is targeting 10,000 keys by the next financial year as it looks to scale its technology-led operating model across multiple markets.

According to Kahraman Yigit, CEO and Co-founder of Olive Hospitality, the Open Hotels platform currently contributes about 18 percent of the company’s portfolio and is expected to grow rapidly as expansion plans progress.

Olive Hospitality currently operates three brands across the budget and mid-scale hotel segments, including Olive Hotels and Spark by Hilton. The company’s combined portfolio includes 112 properties with 4,615 keys. Open Hotels currently operates 30 properties with 827 keys.

“Across our three verticals, we currently manage 112 properties with 4,615 keys. Open Hotels currently includes 30 properties with 827 keys. As we work toward our target of 10,000 keys over the next 12 months, we see Open Hotels as a significant growth driver within the platform. Given its positioning and scalability, we believe it has the potential to grow at an exponential pace and meaningfully outpace the rest of the portfolio,” Yigit said.

Unlike traditional hotel operating models, Open Hotels integrates an agentic AI layer that functions as a 24/7 digital general manager. The system supports several operational functions including pricing management, front office operations, guest engagement, security monitoring and reputation management.

“One advantage of the AI-led model is that our front office staff can manage check-ins across multiple locations from a centralised system. For example, an employee can check in a guest in Goa and the next moment handle a check-in in Vijayawada. With the widespread adoption of UPI and other digital payment systems, customers have been comfortable using AI-enabled check-ins, especially during late-night arrivals. Our staff typically work in Grade A office space and oversees operations across several hotels, making the role more similar to an IT operations role. For smaller budget hotels, this model is becoming essential, and it even has the potential to manage check-ins across cities globally, like New York and London and come back to Bengaluru check in, from a central location,” Yigit said.

While the AI-driven system supports several hotel functions, it does not completely replace front desk operations. Some smaller properties operate through AI on a 24x7 basis, while larger hotels use the system mainly during night shifts to support operations.

The technology-focused approach also allows the company to expand more quickly by onboarding existing hotels rather than developing new properties. According to Yigit, traditional hotel projects under Olive Hotels or Spark typically require longer timelines to become operational. Brownfield hotel conversions generally take between six and twelve months, while greenfield developments can take between 18 and 36 months to launch. In comparison, Open Hotels can integrate existing properties with its technology platform and bring them online in approximately three weeks.

“We are not doing major physical refurbishment. We take existing properties and use technology to standardise operations,” Yigit said.

Open Hotels currently operates in several cities including Bengaluru, Hyderabad, Vijayawada, Chikkamagaluru, Visakhapatnam and Murudeshwar. Across Olive Hospitality’s portfolio, the Olive Hotels brand currently includes 73 properties with 3,124 keys, while Spark operates 9 properties with 664 keys. Open Hotels accounts for 30 properties with 827 keys.

Room tariffs vary across the brands. Olive Hotels typically operate in the Rs 2,000– Rs 4,000 range. Open Hotels also focuses largely on the Rs 2,000– Rs 4,000 segment, while Spark by Hilton targets a higher price bracket between Rs 4,000 and Rs 8,000. As part of its expansion strategy, Olive Hospitality has also started entering northern markets. The company recently expanded into the National Capital Region with a new property under the Olive brand in Gurugram.