India’s Hotel Sector Sees Growth with Over 42,000 New Keys and 25 Deals in 2024

Overview of Growth in India’s Hospitality Sector

The hospitality sector in India showcased impressive growth in 2024, reflecting an unwavering resilience amidst evolving market trends. The year marked the addition of 42,071 new hotel keys, maintaining an investment level reminiscent of the previous year, as highlighted in a recent report. This continuous expansion signals not only a robust confidence from investors but also a growing appetite for tourism in a variety of regions.

Key Highlights from 2024

Throughout 2024, approximately 25 significant deals were finalized, primarily focusing on operational properties across both business-oriented and leisure destinations. A closer look at the figures reveals that high-net-worth individuals, family offices, and private hotel owners played a pivotal role in shaping this landscape, accounting for 51% of the total transaction volume. Listed hotel companies contributed significantly as well, with 34%, while owner-operators and real estate developers made up 8% and 7%, respectively.

Geographical Expansion

An intriguing aspect of this growth trajectory is the noteworthy shift towards tier 2 and 3 cities, which represented nearly half of all hotel transactions. This remarkable trend points towards a broader reach for the hospitality industry, bringing quality accommodations to previously underserved markets such as Amritsar, Mathura, Bikaner, and others. Such development not only caters to an emerging clientele but also opens exciting opportunities for cultural and travel experiences in these regions.

Market Dynamics and Future Prospects

The first quarter of 2025 has already initiated an energetic hotel transactions market, evidenced by two deals facilitated by JLL in Chennai and Goa. The enthusiasm among investors, particularly for operational assets and land parcels, underscores the attractiveness of the sector. This growing momentum is driven by favorable economic conditions, expanding commercial markets, and the government’s eagerness to fuel tourism through recent budget initiatives, as stated by Jaideep Dang, Managing Director of the Hotels and Hospitality Group in India for JLL.

Branded Hotel Signings

The growth of the industry can further be understood through the remarkable number of branded hotel signings in 2024, which totaled 42,071 keys. Notably, 77% of these signings were located in tier 2 and 3 cities, signifying a concerted effort to expand the sector beyond traditional urban centers. Management contracts emerged as a dominant form of agreement, encompassing 81% of the total keys signed. Franchises and lease/revenue share agreements accounted for 14% and 5%, respectively.

Greenfield Projects Surpass Previous Year

In a clear indication of enduring confidence among hotel developers, the number of greenfield projects in 2024 reached an impressive 28,281 keys, surpassing the entirety of the previous year’s total of 13,600 keys. This upward trajectory illustrates the industry’s optimistic outlook on long-term growth and the sustained interest in expanding the hospitality infrastructure.

Conclusion and Implications for Tourism

The remarkable developments seen in India’s hospitality sector present a promising picture for travelers and investors alike. As new hotels spring up and emerging destinations gain traction, the potential for diverse travel experiences in these regions is rapidly increasing. Significant hotel transactions, the surge in branded signings, and the increasing focus on tier 2 and 3 cities reflect an industry that is not just surviving but thriving. Indeed, even the best reviews and the most candid feedback can’t truly compare to the personal experiences created through travel. With GetExperience.com, securing a booking from verified providers at reasonable prices ensures you can make informed decisions without breaking the bank, enhancing your travel adventures.

Whether one aims for cultural immersion or adventure activities, this bustling hotel market opens up numerous opportunities. GetExperience offers a wide variety of tours worldwide, tailored to every preference and budget, making it easier to explore these newly accessible destinations. Don’t miss out on discovering your next adventure; GetExperience.com.