Listed hotel operators in India are projected to add more than 70,000 keys by 2030 to leverage the country’s strong growth potential, according to a report by CBRE. The sector witnessed a significant surge in investment activity during 2025, with the total hotel deal value reaching approximately USD 456 million, a 2.5-fold year-on-year increase from USD 184 million recorded in 2024.
The “India Alternate Sectors Outlook 2026” report by CBRE noted that the industry is transitioning from a post-pandemic recovery phase into a stage of structural maturity. This phase is marked by disciplined expansion and stable pricing across segments.
The report estimated that the hospitality market size will grow from around USD 24.6 billion in 2024 to nearly USD 31 billion by 2029. This growth is largely supported by domestic tourism, with visits rising 40 per cent year-on-year to 4.1 billion in 2025.
“The hospitality sector’s trajectory is a testament to India’s economic resilience, supported by rising disposable incomes and improving accessibility facilitated by large-scale infrastructure development,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
“As the industry accelerates its transition towards experience-driven travel and captures institutionalised demand across spiritual and cultural centres, we anticipate robust and long-term expansion for the country’s hospitality ecosystem,” he added.
Despite geopolitical tensions and aviation disruptions in late 2025, the sector maintained its growth momentum. Average occupancy levels reached approximately 64 per cent, while Revenue per available room (RevPAR) grew 11 per cent year-on-year. Average daily rates (ADR) also increased by 8.7 per cent.
Supply trends indicate a shift toward premium offerings, with Upper Midscale, Upper Upscale, and Upscale categories accounting for around 60 per cent of all new hotel openings during the year.
“Institutional players are aggressively acquiring large stakes in the hospitality sector,” said Rami Kaushal, Managing Director, Consulting and Valuations, India, Middle East and Africa, CBRE.
“Investor interest is increasingly shifting towards diversification into leisure destinations, pilgrimage centres, and emerging commercial cities with a constrained supply of branded inventory. The strategic realignment towards asset-light expansion models is enhancing the sector’s institutional appeal, paving the way for sustained consolidation and M&A activity as operators look to scale their platforms,” Kaushal noted.
Operators are increasingly adopting management contracts and franchise partnerships to strengthen balance sheets. This shift toward asset-light models is expected to drive consolidation through 2026.
Growth in the sector is also being supported by government infrastructure projects, including high-speed rail corridors and aviation expansion. Additionally, GST rationalisation in September 2025 improved competitiveness across segments, while the Union Budget FY2026-27 outlined initiatives to enhance professional training and strengthen the talent pipeline for the hospitality industry.
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