Synopsis
India's hospitality sector displayed strong growth in 2024, with 25 deals and 42,071 new hotel keys, reflecting resilience and a shift towards tier 2 and 3 cities, enhancing market reach.Key Takeaways
- India's hospitality sector showed remarkable resilience in 2024.
- 42,071 new hotel keys were added this year.
- Approximately 25 deals occurred, mainly in operational properties.
- High-net-worth individuals led with 51% of transaction volume.
- Focus on tier 2 and 3 cities marked a significant trend.
Mumbai, April 14 (NationPress) India's hospitality sector exhibited exceptional resilience and growth in 2024, sustaining investment levels comparable to the prior year with 42,071 new hotel keys, as per a report released on Monday.
The year 2024 witnessed around 25 deals, primarily revolving around operational properties in both business and leisure destinations, according to the latest analysis by JLL.
High-net-worth individuals, family offices, and private hotel owners spearheaded the activity, accounting for 51 percent of the transaction volume.
Following closely were listed hotel companies with 34 percent, while owner-operators and real estate developers contributed 8 percent and 7 percent respectively.
Notably, there has been a significant shift towards tier 2 and 3 cities, which represented nearly half of all hotel transactions.
This trend has effectively expanded the industry's reach, providing high-quality accommodations to previously underserved regions such as Amritsar, Mathura, Bikaner, and others.
“The first quarter of 2025 has sparked a vibrant hotel transactions market, with JLL already facilitating two deals in Chennai and Goa. Investor interest in both operational assets and land parcels highlights the sector's allure, supported by favorable economic conditions, growing commercial markets, and the government's recent budget initiatives for tourism,” stated Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
After a record-breaking year in 2024 for hotel investments, openings, and signings, 2025 has started off strong and is expected to continue this momentum, added Dang.
The industry's expansion is further evidenced by the impressive tally of branded hotel signings, totaling 42,071 keys in 2024. Remarkably, 77 percent of these signings were concentrated in tier 2 and 3 cities, emphasizing the sector's growth beyond traditional urban locales.
Management contracts dominated these agreements, comprising 81 percent of the total keys signed, whereas franchises and lease/revenue share agreements accounted for 14 percent and 5 percent respectively.
The count of greenfield projects in 2024 (28,281 keys) surpassed the total for the entire year of 2023 (13,600 keys), showcasing the enduring confidence of hotel developers in the sector’s long-term viability, as indicated by the report.
