India's Hotel Sector to Welcome Over 70,000 New Rooms by 2030: Key Insights
Synopsis
A recent report unveils that India's listed hotel operators are set to introduce over 70,000 new keys by 2030, marking a significant shift in the hospitality landscape post-pandemic. With rising domestic tourism and a focus on luxury, the sector is poised for robust growth.
Key Takeaways
Over 70,000 new hotel keys expected in India by 2030.
Market size projected to rise from $24.6 billion to $31 billion by 2029.
Domestic tourism to increase by 40% YoY, reaching 4.1 billion visits.
60% of new hotel openings focus on premium segments .
Strong growth despite geopolitical tensions and aviation disruptions.
New Delhi, April 14 (NationPress) According to a recent report, India’s publicly listed hotel operators are poised to expand their inventory by over 70,000 rooms by 2030, as the industry transitions from post-pandemic recovery to a phase of structural maturity.
As indicated by CBRE South Asia Pvt. Ltd., the market size for this sector is projected to increase from $24.6 billion in 2024 to approximately $31 billion by 2029. This growth is significantly fueled by domestic tourism, which is anticipated to experience a remarkable 40% year-on-year surge, reaching 4.1 billion visits by 2025.
The supply pipeline for 2025 is notably shifting towards premium offerings, reflecting the growing consumer demand for luxurious experiences. Notably, the Upper Midscale, Upper Upscale, and Upscale segments comprised around 60% of the new openings last year.
The report highlights that the hospitality industry is evolving from a post-pandemic recovery phase into one of structural maturity, marked by disciplined growth and pricing stability.
In 2025, the total hotel transaction value saw a dramatic 2.5-fold increase year-on-year, reaching approximately $456 million. Since 2024, there has been a significant uptick in investment activities within India's hospitality sector, with institutional investors actively acquiring substantial stakes.
“The trajectory of the hospitality sector demonstrates India’s economic resilience, bolstered by increasing disposable incomes and enhanced accessibility due to extensive infrastructure development,” remarked Anshuman Magazine, Chairman & CEO for India, South-East Asia, Middle East & Africa at CBRE.
As the sector accelerates its shift towards experience-driven travel and caters to institutional demand in spiritual and cultural hubs, he anticipates robust and sustainable growth for the nation’s hospitality landscape.
Despite facing year-end challenges such as geopolitical tensions and disruptions in aviation operations, the sector sustained strong growth throughout 2025.
In 2025, average occupancy rates hovered around 64%, with revenue per available room increasing by 11% year-on-year, alongside an 8.7% rise in average daily rates, as reported.
“Investor focus is increasingly turning towards diversifying into leisure destinations, pilgrimage sites, and emerging commercial hubs where branded inventory remains limited,” noted Rami Kaushal, Managing Director of Consulting & Valuations for India, Middle East & Africa at CBRE.
aar/rad
Point of View
Leveraging increased domestic tourism and a growing appetite for luxury offerings. This evolution highlights the economic resilience and investment potential within the industry.
NationPress
3 May 2026
Frequently Asked Questions
What is the expected growth of India's hotel sector by 2030?
India's listed hotel operators are projected to add over 70,000 keys by 2030, indicating significant growth in the sector.
How much is the market size of the hospitality sector expected to increase?
The market size is anticipated to grow from $24.6 billion in 2024 to around $31 billion by 2029.
What is driving the growth in domestic tourism?
A remarkable 40% year-on-year increase in domestic tourism is expected, reaching 4.1 billion visits in 2025.
What segments are leading new hotel openings?
The Upper Midscale, Upper Upscale, and Upscale categories accounted for about 60% of new hotel openings in the previous year.
What was the hotel deal value in 2025?
The total hotel deal value grew 2.5-fold year-on-year in 2025 to approximately $456 million.
