Skip to content

Search

Latest Stories

Report: India’s hospitality sector to attract $1B by 2028

RevPAR rose 16.3 percent in January-March year-on-year

India hotel investment forecast

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.

What hot hotel investment is coming to India by 2028?

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.

More for you

Skill Council and Lalit Suri Hospitality School starts hospitality training in India

Skill council, school take on hospitality training in India

Summary:

  • The Tourism and Hospitality Skill Council and The Lalit Suri Hospitality School signed an MoU to improve hospitality education.
  • The collaboration reflects a broader push to invest in youth training and workforce readiness in India’s hospitality sector.
  • It aims to provide domain knowledge, hands-on training and certifications for domestic and international careers.

THE TOURISM AND Hospitality Skill Council and The Lalit Suri Hospitality School recently signed a memorandum of understanding to improve the quality and reach of hospitality training in India. The collaboration reflects a broader push to invest in youth training and workforce readiness in the sector.

Keep ReadingShow less
Baruasagar Fort and Raja Rani Mahal restored as luxury heritage stays by Neemrana Hotels in India
Photo credit: ANI

Neemrana to restore heritage sites in UP, MP

Summary:

  • Neemrana Hotels is working with Uttar Pradesh and Madhya Pradesh to restore heritage sites.
  • The two sites are Baruasagar Fort in Jhansi, Uttar Pradesh, and Raja Rani Mahal in Chanderi, Madhya Pradesh.
  • Neemrana aims to convert them into “revenue-generating non-hotels.”

INDIA’S NEEMRANA HOTELS recently signed agreements with the governments of Uttar Pradesh and Madhya Pradesh states to restore and adapt heritage structures under a public-private partnership. The two sites are Baruasagar Fort in Jhansi, Uttar Pradesh, and Raja Rani Mahal in Chanderi, Madhya Pradesh.

Keep ReadingShow less
Tata Launches Asset-Light Platform for IHCL via Tata Sons
Ginger Hotels

Report: Tata launches asset-light platform for IHCL

SUMMARY:

  • Tata Sons launched a hospitality platform for Indian Hotels Co. Ltd., enabling revenue-share operations on group-owned assets.
  • The first asset on the platform is a Ginger hotel near Kolkata airport.
  • IHCL is set to reach 400 hotels by the end of July and targets 700 by 2030.

TATA SONS LAUNCHED a new hospitality platform to support Indian Hotels Co. Ltd., enabling it to operate group-owned hotels on a revenue-share model while staying asset-light. The first project under this initiative is a 195-room Ginger hotel under construction near Kolkata airport.

Keep ReadingShow less
Welcomhotel Prayagraj exterior view with heritage-inspired architecture
Photo credit: ITC Hotels

India's ITC Hotels profit jumps 53 percent in Q1

Summary:

  • ITC Hotels posted record quarterly profit and revenue in the first quarter of fiscal 2026, with revenue up 20 percent to $103.2 million and profit up 53 percent to $16.08 million.
  • The portfolio has grown to more than 200 hotels, with 143 operational and 58 in the pipeline.
  • Welcomhotel Prayagraj, ITC’s seventh property in Uttar Pradesh, includes 60 rooms and banqueting space.

INDIA’S ITC HOTELS posted its highest-ever quarterly profit and revenue in the first quarter of fiscal year 2026, with consolidated revenue up 20 percent to $103.2 million and profit rising 53 percent to $16.08 million, according to a Times of India report. Meanwhile, ITC launched Welcomhotel Prayagraj in Uttar Pradesh, bringing its total to seven properties in the state, with six more in the pipeline.

Keep ReadingShow less
Tata Sons announces $58M memorial trust to support victims of June 12 Air India crash and aid reconstruction efforts
Photo credit: Vishma Ahanthem/AFP

Tata sets up $58M trust for Air India crash victims

Summary:

  • Tata Sons and Tata Trusts formed a $58 million welfare trust for victims of the June 12 Air India crash, contributing $29 million each.
  • Tata Sons, established in 1917 and registered in Mumbai, is the Tata Group’s holding company; Tata Trusts collectively own 66 percent of it.
  • Tata Sons reacquired 100 percent of Air India in January 2022 through its subsidiary Talace Pvt Ltd.

TATA SONS ESTABLISHED a $58 million, or Rs 500 crore, welfare trust for victims of the June 12 Air India crash. The AI-171 Memorial and Welfare Trust is registered in Mumbai.

Keep ReadingShow less