India’s hospitality industry is on the cusp of a massive expansion, with sector experts projecting the addition of over 1,00,000 new hotel keys within the next five years. This anticipated surge marks a 20–30% growth from current 2024 levels and is driven by a robust domestic tourism wave, rising disposable incomes, and an ongoing demand-supply gap across key travel destinations.

Manav Thadani, Chairman of Hotelivate, highlighted the accelerating pace of growth: “While India was previously adding around 7,000 to 8,000 rooms annually, we’re now seeing 12,000 to 15,000 branded hotel rooms being added each year.”

According to the India Hotel Market Review 2024 by Horwath HTL (Hotel, Tourism and Leisure), India’s total room inventory is expected to surpass 300,000 keys by 2029. Fueling this growth are ambitious expansion plans from global hospitality chains. The Ascott Limited, for instance, aims to double its inventory to 12,000 rooms by 2028, while Hilton Hotels is strategizing a tenfold increase in its Indian portfolio over the next decade.

The industry’s momentum is reflected in the numbers. Over 200 hotels were launched last year alone, adding 13,800 new rooms to the market. Marriott International has made significant inroads, with luxury properties comprising 70% of its new signings in India. The country is now on the verge of becoming the hotel chain’s third-largest global market.

Radisson Hotel Group is also experiencing what it calls a “golden period,” having signed 36 new deals in 2023 and over 20 more expected this year. Meanwhile, Lemon Tree Hotels reported 50 new signings in 2024, with a consistent 15–20% year-on-year revenue growth since the pandemic recovery.

Executives across the sector are bullish on India’s prospects, citing an expanding middle-class base, heightened interest in experiential travel, and increased investments from domestic and international hospitality brands.

The next five years are expected to be transformative, not just in terms of capacity but also in the elevation of hospitality standards across India’s tier-1 and emerging tier-2 cities.

Disclaimer: This article is based on secondary research and publicly available information. TIN Media is not liable for any discrepancies in the reported data.

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