New Delhi, May 18: A report released on Monday highlights a remarkable surge in India’s hospitality sector, with hotel investments reaching approximately $567 million through 28 deals in 2025. This marks an impressive increase of nearly 67% compared to the previous year.
According to the report by commercial real estate services firm JLL, institutional capital and private equity accounted for 35% of the total investments. High-net-worth individuals and family offices contributed 27%, while listed hotel companies made up 25%. This indicates a growing diversity and strength in the sources of investment within the hotel sector.
The report also noted that tier-2 and tier-3 cities captured about 40% of the total investments. Emerging cities dominated branded hotel signings, holding a 71% share. These cities included several premium properties, such as luxury resorts in Rishikesh, upscale properties in Goa, and mid-scale hotels in Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.
The luxury and upscale hotel segments were the most active, with luxury hotels accounting for 42% of total deals and upscale hotels for 41%. Notably, 69% of the deals were linked to hotels that were already operational and generating revenue.
The report stated that various government initiatives are creating significant opportunities for hotel investments, including land monetization at airports and government-led auctions. Key strategic areas include Yashobhoomi (IICC), Hyderabad’s Neopolis, Chennai’s Fintech City, and the Jewar Airport in Noida.
Gaurav Sharma, Senior Director of Hotels and Asia Hotels Capital Markets at JLL India, emphasized that India’s hotel investment market reflects growing investor confidence and robust market potential. He noted that the increasing participation of institutional and domestic investors is driving a consistent rise in deal numbers. Additionally, there is a rapid trend of hotel expansion beyond major cities.
Sharma also pointed out that the availability of high-performing hotel properties has become limited, leading to increased demand for quality hotels among investors.
The report indicated that the momentum continued into the first quarter of 2026, with hotel investments reaching approximately $185 million, a 58% increase compared to $117 million during the same period last year.
It is projected that supportive government policies, land monetization plans, and infrastructure development related to tourism will create new opportunities for hotel investments in the future.
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