India’s hospitality sector demonstrated exceptional resilience and progress in 2024, sustaining funding ranges on par with the earlier 12 months with 42,071 new hotel keys, a report confirmed on Monday. The 12 months 2024 noticed roughly 25 offers, primarily involving operational properties in each enterprise and leisure locations, based on JLL’s newest evaluation.
High-net-worth individuals, household workplaces, and personal resort house owners led the cost, contributing 51 per cent of the transaction quantity. Listed resort corporations adopted intently at 34 per cent, whereas owner-operators and actual property builders made smaller however vital contributions at 8 per cent and seven per cent, respectively.
In accordance with the report, what’s notably noteworthy is the numerous shift in the direction of tier 2 and 3 cities, which accounted for practically half of all resort transactions. This development has successfully broadened the trade’s attain, bringing high quality lodging to beforehand underserved markets similar to Amritsar, Mathura, Bikaner, and a number of other others.
“The primary quarter of 2025 has ignited a dynamic resort transactions market, with JLL already facilitating two offers in Chennai and Goa. Investor enthusiasm for each operational property and land parcels underscore the sector’s attractiveness, buoyed by beneficial financial circumstances, increasing industrial markets, and authorities’s current finances push for tourism,” stated Jaideep Dang, Managing Director, Motels and Hospitality Group, India, JLL.
Following 2024’s record-breaking 12 months in resort investments, openings, and signings, 2025 has commenced strongly and is additional anticipated to keep up this momentum, Dang added.
The trade’s progress is additional evidenced by the spectacular variety of branded hotel signings, totalling 42,071 keys in 2024. Remarkably, 77 per cent of those signings had been concentrated in tier 2 and three cities, underlining the sector’s enlargement past conventional city centres.
Administration contracts dominated these agreements, accounting for 81 per cent of the entire keys signed, whereas franchises and lease/income share agreements throughout tiers stood at 14 per cent and 5 per cent, respectively. The variety of greenfield projects in 2024 (28,281 keys) crossed the complete 12 months of 2023 (13,600 keys), indicating the enduring confidence of resort builders within the sector’s long-term progress, stated the report.
