India’s hospitality sector will require 11.15–11.61 million sqm of additional real estate by 2035, equivalent to 190,000-210,000 new hotel key
India’s hospitality sector will require 11.15–11.61 million sqm of additional real estate by 2035, equivalent to 190,000-210,000 new hotel keys, with the sector attracting USD 905 million in real estate investments between 2024 and the first half of 2026, according to a report by CBRE, a global commercial real estate services and investment firm.
The report, Beyond Core: A 2035 View of India’s Alternate Sectors – Part I, projects demand across economy, midscale, upscale, upper-upscale and luxury hotel categories, driven by business, leisure and experience-led travel.
In a press statement CBRE says that the gateway cities account for around 35 pc of branded hotel inventory but generate approximately 50 pc of sector revenues, supported by corporate travel, Meetings, Incentives, Conferences and Exhibitions (MICE), and transit demand.
The statement adds that meanwhile, leisure, cultural and spiritual destinations are creating opportunities for resort-led and experience-based hospitality developments beyond major urban centres.
CBRE’s report identifies management contracts, franchise partnerships, brownfield acquisitions and rebranding as key routes for hotel operators and investors to expand their presence and enter new markets.
Investor interest is also shifting towards platform-level commitments, strategic joint ventures and income-generating assets. These models allow operators to expand their networks while limiting the capital required to own and develop properties, says the statement.
Also Read: Listed hospitality firms to add 70,000 keys in India by 2030: CBRE
Anshuman Magazine
The report also points to luxury hotels, lifestyle properties and premium resorts as formats that could support higher pricing and average daily rates (ADR), as travellers seek differentiated accommodation and destination-based experiences.
“India’s hospitality opportunity is becoming increasingly diverse, with growth extending beyond traditional hotel markets and formats. As business, leisure and experience-led travel evolve, developers and operators are taking a more market-led approach to identifying opportunities. This involves understanding the demand drivers of each destination and building strong operating partnerships. The focus is moving beyond adding inventory to creating differentiated hospitality assets that remain relevant to changing traveller preferences and deliver sustainable long-term value,” says Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.
Rami Kaushal
“Domestic tourism is emerging as a structural driver of India’s hospitality sector, supported by rising discretionary spending, improved connectivity and growing interest in leisure, wellness and destination-led travel. Operators are increasingly pursuing strategic premiumisation across luxury, lifestyle and resort formats to capture evolving traveller preferences. Supported by healthy demand fundamentals, this trend is expected to strengthen pricing power and support ADR growth across segments,” says Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE.
