India’s hospitality sector surges: Multimillion-dollar investments and over 42,000 new hotel keys in 2024
KOLKATA, Apr 14 : India’s hospitality sector demonstrated remarkable resilience and growth in 2024, maintaining investment levels on par with the previous year.
This robust performance, as reported by JLL’s latest analysis, signals a strong recovery and expanding footprint for the industry across the subcontinent.
The year 2024 saw about 25 deals, primarily involving operational properties in both business and leisure destinations. What’s particularly noteworthy was the significant shift towards Tier II and III cities, which accounted for nearly half of all hotel transactions. This trend has effectively broadened the industry’s reach, bringing quality accommodations to previously underserved markets such as Amritsar, Mathura, Bikaner, and several others.
Investor diversity was a key feature of 2024’s landscape. High-net-worth individuals, family offices, and private hotel owners led the charge, contributing 51% of the transaction volume. Listed hotel companies followed closely at 34 percent, while owner-operators and real estate developers made smaller but significant contributions at 8 pc and 7 pc respectively.
The industry’s growth is further evidenced by the impressive number of branded hotel signings, totaling 42,071 keys in 2024. Remarkably, 77 pc of these signings were concentrated in Tier 2 and 3 cities, underlining the sector’s expansion beyond traditional urban centers. Management contracts dominated these agreements, accounting for 81 pc of the total keys signed, while franchises and lease / revenue share agreements across tiers stood at 14 pc and 5 pc respectively. The number of greenfield projects in 2024 (~28,281keys) crossed the full year of 2023 (~13,600 keys), indicating the enduring confidence of hotel developers in the sector’s long-term growth. Tier 1 markets such as Mumbai, Bengaluru, Hyderabad, Pune, and Chennai saw signings of hotels with 250+ keys, signaling sustained interest in these hubs due to robust domestic demand and thriving commercial activity.
“The first quarter of 2025 has ignited a dynamic hotel transactions market, with JLL already facilitating two deals in Chennai and Goa. Investor enthusiasm for both operational assets and land parcels underscore the sector’s attractiveness, buoyed by favorable economic conditions, expanding commercial markets, and Government’s recent budget push for tourism. This positive outlook is reinforced by substantial hotel development across various tiers, with over 42,071 keys signed in 2024. Following 2024’s record-breaking year in hotel investments, openings, and signings, 2025 has commenced strongly and is further expected to maintain this momentum,” said , managing director, Hotels and Hospitality Group, India, JLL. Jaideep Dang.
As India’s hospitality sector continues to evolve and expand, it’s clear that the industry is not just recovering but thriving, with a bright future ahead in both established and emerging markets across the country.
JLL is India’s premier and largest professional services firm specialising in real estate.
(UNI)
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