India's Surging Hotel Investment Landscape
INDIA’S HOSPITALITY INDUSTRY is expected to attract $1 billion in investments by 2028, up from $340 million in hotel transactions last year, according to JLL India. RevPAR rose 16.3 percent from January to March compared to the same period last year. It also rose 8 percent from the fourth quarter of 2024.
Around 79 hotels with 9,478 keys were signed during the quarter, while 31 branded hotels with 3,253 keys opened, the report said.
“The pipeline of 79 new hotel signings, representing 9,478 keys this quarter, reflects investor confidence in India’s hospitality fundamentals,” said Jaideep Dang, JLL India’s managing director for hotels and hospitality group. “With JLL projecting $1 billion in investments by 2028, we are seeing a market shift that balances short-term performance gains with strategic long-term positioning across all tiers and segments. This growth follows $340 million in hotel transactions last year.”
The report showed Bengaluru led with 38.3 percent year-on-year RevPAR growth, driven by the Aero India 2025 event, which boosted occupancy and ADR, JLL said. Delhi and Mumbai followed with RevPAR growth of 26.2 percent and 21.3 percent, supported by occupancy levels.
Chennai recorded 18.7 percent RevPAR growth, driven by increased corporate travel, the Annual Leather Fair, and the USICON event at Chennai Trade Centre. Hyderabad posted 15.1 percent RevPAR growth despite a slight occupancy decline, showing strength in rate growth.
The pipeline remained active with 31 new branded hotels and 3,253 keys opening in the first quarter.
The upscale and midscale segments had the most openings and signings. During the quarter, 10 upscale hotels with 843 keys opened and 21 hotels with 2,734 keys were signed. The midscale segment had 12 openings with 934 keys and 29 signings with 2,821 keys. Upper upscale and luxury followed, while the economy segment had one opening and six signings.
Most branded hotel openings and signings were in tier 2 markets. During the quarter, 15 hotels with 1,307 keys opened and 50 hotels with 5,904 keys were signed in tier 2 cities, exceeding the combined total in tier 1 and tier 3 markets.
Transaction activity included Chalet Hotels Ltd acquiring the 141-key Westin Resort & Spa, Rishikesh, for about ₹530 crore, approximately $62 million. The quarter also saw Hilton partner with NILE Hospitality to launch 75 Hampton hotels starting in 2026.
A recent Rubix Data Sciences report projects steady growth in the Indian hospitality industry despite regional tensions, with revenue expected to exceed $12.8 billion by 2027.
