India’s listed hotel operators are set for a major expansion, signalling a structurally maturing sector backed by strong domestic tourism demand
India’s hospitality sector is entering a phase of sustained growth, with listed hotel operators expected to add over 70,000 keys by 2030, while the market size is projected to expand from USD 24.6 billion in 2024 to around USD 31 billion by 2029, driven largely by a 40 pc surge in domestic tourism to 4.1 billion visits in 2025, says a report by CBRE South Asia, a leading commercial real estate services and investment firm based in Dallas, United States.
In a press statement, the firm says that according to the report the hospitality sector maintained strong momentum through 2025 despite geopolitical tensions and aviation-related disruptions. Occupancy levels reached around 64 pc, while revenue per available room (RevPAR) rose 11 pc year-on-year, surpassing the 9 pc growth recorded in 2024. Average Daily Rates (ADR) increased by 8.7 pc, reflecting improved pricing power across segments.
It adds that the supply pipeline in 2025 showed a clear shift towards premiumisation, with Upper Midscale, Upper Upscale and Upscale categories accounting for nearly 60 pc of new hotel openings, indicating rising consumer preference for higher-end experiences.
The report shows that since 2024, the sector has seen a surge in investment activity, with institutional players increasing their presence through large stake acquisitions. Total hotel deal value reached approximately USD 456 million in 2025, marking 2.5 times increase from USD 184 million in 2024. This momentum is expected to continue as investors explore portfolio-led investments and targeted asset acquisitions.
The statement says that major hospitality players have also turned to public markets, leveraging IPOs to raise capital, reduce debt and accelerate expansion across regions. According to CBRE, investor interest is increasingly shifting towards leisure destinations, pilgrimage centres and emerging commercial cities with limited branded inventory.
According to the statement, operators are also exploring acquisition-led growth strategies to scale portfolios and expand market presence, particularly in Tier II and Tier III cities, supported by improving connectivity and tourism infrastructure. India’s large base of independent and unbranded hotels presents further opportunities for asset aggregation and brand conversions.
The report says that investment activity is expected to remain strong through 2026, backed by sustained travel demand and continued investor interest in scalable hospitality platforms. At the same time, developers and operators are moving towards experience-driven, higher-yield assets, including integrated mixed-use developments and residential-style luxury offerings catering to high-net-worth individuals.
Anshuman Magazine
The statement adds that India’s spiritual and heritage tourism landscape is evolving into a year-round demand segment, supported by government investments and expanding transport infrastructure. Developments such as high-speed rail corridors and aviation sector expansion are improving accessibility and enabling premium operators to enter emerging markets.
“The hospitality sector’s trajectory is a testament to India’s economic resilience, supported by rising disposable incomes and improving accessibility facilitated by large-scale infrastructure development. As the industry accelerates its transition towards experience-driven travel and captures institutionalised demand across spiritual and cultural centres, we anticipate robust and long-term expansion for the country’s hospitality ecosystem,” says Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
Rami Kaushal
“Institutional players are aggressively acquiring large stakes in the hospitality sector. Investor interest is increasingly shifting towards diversification into leisure destinations, pilgrimage centres, and emerging commercial cities with a constrained supply of branded inventory. The strategic realignment towards asset-light expansion models is enhancing the sector’s institutional appeal, paving the way for sustained consolidation and merger and acquisition activity as operators look to scale their platforms,” says Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East and Africa, CBRE.