India’s biggest hotel chains are betting their money on curated, luxury stays in offbeat locations, as they seek to stand out in an overcrowded travel market where traditional vacations have begun to feel ordinary.

As throngs of tourist groups head to popular destinations like Goa, Jaipur and Shimla, travel operators are racing to invest in untouched corners of the country. From dolphin watching off a tiny Arabian Sea island to hidden waterfalls in the Himalayan foothills, the focus is on capturing high-spending travelers seeking fresh and authentic alternatives.

Indian Hotels Co., owner of the Taj brand, has been among the most aggressive. Last month, it acquired a majority stake in Sparsh Infratech Pvt., which runs the wellness retreat Atmantan in the Western Ghats, a UNESCO world heri

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