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.
In 2024, approximately 25 deals were made, primarily involving operational properties in both business and leisure destinations. What's particularly noteworthy is 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 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%, while owner-operators and real estate developers made smaller but significant contributions at 8% and 7%, respectively.
The industry's growth is further evidenced by the impressive number of branded hotel signings, totalling 42,071 keys in 2024. Remarkably, 77% of these signings were concentrated in Tier 2 and 3 cities, underlining the sector's expansion beyond traditional urban centres. Management contracts dominated these agreements, accounting for 81% of the total keys signed, while franchises and lease/revenue share agreements across tiers stood at 14% and 5%, respectively. The number of greenfield projects in 2024 (~28,281 keys) 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, signalling sustained interest in these hubs due to robust domestic demand and thriving commercial activity.
Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL, said, "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 operational assets and land parcels underscores the sector's attractiveness, buoyed by favourable economic conditions, expanding commercial markets, and the 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."
As India's hospitality sector continues to evolve and expand, the industry is recovering and thriving, with a bright future ahead in established and emerging markets nationwide.
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