India’s hospitality sector entered a decisive growth phase in 2024, marked by strong investment activity and rapid capacity addition. Around 25 major transactions were concluded across business and leisure destinations, while 42,071 branded hotel keys were signed, underscoring renewed investor confidence and long-term demand visibility.
A defining shift is the geographic rebalancing toward Tier 2 and Tier 3 cities, which accounted for 77 percent of new signings and nearly 50 percent of transaction activity. Cities such as Amritsar, Mathura, and Bikaner are emerging as new hospitality hubs, driven by improving connectivity, domestic tourism growth, and lower development costs.
Investor participation remained broad-based, led by HNIs, family offices, and private hotel owners, alongside listed hotel companies. Supported by the government’s tourism infrastructure push and rising domestic travel, India’s hospitality market is transitioning from post-pandemic recovery to sustained, diversified expansion, positioning hotels as stable, yield-oriented real estate assets across both metro and emerging urban markets.
Source: JLL