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Report: Faith tourism spurs hotels

Religious destinations hold 6 percent branded keys

Report: Faith tourism spurs hotels

HVS Anarock report found India's religious tourism driving branded hotel development through 2030.

Photo credit: iStock
  • Religious destinations account for 14 percent of hotel pipeline.
  • Ayodhya leads pipeline with 2,100 branded keys.
  • Religious tourism market to reach $671.9 billion.
INDIA’S RELIGIOUS AND spiritual tourism market is drawing growing interest from hotel developers, a new report found. Branded supply is expanding in pilgrimage destinations but remains limited.
HVS Anarock's July report, “The Rise of Faith-led Hospitality in India,” found that religious and spiritual destinations currently account for only about 6 percent of India's branded hotel keys. That equals about 13,100 keys in 190 properties out of a total branded inventory of roughly 214,900 keys.

Religious destinations account for nearly 14 percent of India's branded hotel pipeline, with about 19,760 keys expected by 2030. Globally, the religious tourism market is projected to reach $671.9 billion by 2030.

The report attributes the growth to three factors. First, government investment has improved infrastructure at pilgrimage destinations. Under the PRASHAD scheme, 48 projects have been sanctioned in 27 states and union territories.


Second, the profile of religious travelers is changing. More people are combining pilgrimages with leisure, wellness and cultural trips. This is increasing demand for quality accommodation and other hospitality services.

Third, the report noted that several religious destinations are seeing broader economic growth. Ayodhya leads the pipeline, with about 2,100 branded hotel keys expected by 2030 after a sharp rise in visitor numbers. Amritsar, Pushkar, Tirupati, Varanasi, Rishikesh, Vrindavan, Ujjain, Haridwar and Dwarka are also seeing hotel development, while Varanasi recorded a record 72.6 million visitors in 2025, according to the Uttar Pradesh government.

The report said these destinations vary in their appeal, from temple towns and riverfront spiritual centers to faith-and-leisure destinations. As a result, they offer opportunities for hotels in economy, midscale and upscale segments.

Another recent report by NOESIS Hotel Advisors found institutional investors are now the largest buyers in India's hotel market, reflecting growing interest in the sector.

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