New Delhi, Aug. 27 -- Top hotel chains are discovering a profitable middle ground between opulent palaces and budget stays, where rising consumer spend meets higher room rates. The strategy is taking shape across the industry as listed chains add hotels in the upscale and upper-upscale categories, with companies like Oberoi parent EIH Ltd and Lemon Tree Hotels stating that Trident and Aurika brands in these categories are doing the heavy lifting during leaner periods.

In October last year, ITC Hotels launched its upscale Epiq Collection of hotels as part of a premiumization strategy. Indian Hotels Co. Ltd (IHCL) on the other hand, has said it is expanding its portfolio across categories, while IHG Hotels & Resorts and Wyndham Hotels & Re...