India’s hospitality sector maintained a robust growth trajectory in 2024, as per a recent report by JLL India, highlighting continued investor confidence, geographic diversification, and significant branded hotel development.
The year saw investment levels match those of 2023, with around 25 transactions recorded—largely involving operational assets in both business and leisure destinations. Notably, nearly 50% of these deals were concentrated in Tier II and III cities, marking a distinct shift beyond metro markets and bringing high-quality accommodations to cities such as Amritsar, Mathura, and Bikaner.
Investor participation was broad-based, as per JLL’s analysis. High-net-worth individuals, family offices, and private hotel owners led the charge, accounting for 51% of the total transaction volume. Listed hotel companies followed with 34%, while owner-operators and real estate developers contributed 8% and 7%, respectively
In terms of supply pipeline, 2024 witnessed the signing of 42,071 branded hotel keys—77% of which were in Tier II and III locations. This trend reflects the growing economic potential of smaller cities and the corresponding appetite for hospitality infrastructure. Management contracts dominated the landscape, forming 81% of agreements, with franchises and lease/revenue-sharing models making up the remaining 19%.
Greenfield developments also gained momentum. With approximately 28,281 new keys in the pipeline, 2024 significantly outpaced 2023’s total of 13,600 keys, underscoring the long-term optimism among hotel developers. Simultaneously, Tier I cities like Mumbai, Bengaluru, Hyderabad, Pune, and Chennai continued to attract large-format hotel signings, particularly those with 250 or more keys, driven by sustained domestic demand and commercial activity.
The positive sentiment has carried into 2025. The first quarter alone saw two major transactions brokered by JLL in Chennai and Goa. The government’s increased focus on tourism in the recent budget, alongside improving market fundamentals, is expected to support this ongoing momentum.
With over 42,000 new hotel keys signed and a dynamic investment climate, India’s hospitality industry is not just recovering from past disruptions but is positioning itself for sustained growth in both established metros and emerging destinations.
