Indian Hospitality Sector Shows Great Resilience in 2024 with Over 42,000 New Hotel Keys- The Week – ryan

The Indian Hospitality Sector demonstrated remarkable resilience and growth in 2024, maintaining investment levels on par with the previous year. The most interesting aspect was the growth blessing in Tier II and III cities.

As per a recent report at Global Real Estate Services Firm Jll, Out of the Total Number of Branded Hotel Signings, Totalling 42,071 Keys in 2024, 77 per cent were concentrated in tier II and iii cities, underlining the sector’s expansion Beyond Traditional Uban Center. The year 2024 SAW Approximately 25 Deals, Primarily Involving Operational Properties in Both Business and Leisure Destinations. Here too, particularly noteworthy is the significant shift towards tiger II and III cities, which accounted for nearly half of all hotel transactions. This trend has effectively broadened the industry’s reach, bringing quality accommodations to previously underserved markets such as Amritsar, Mathura, Bikaner, and Several others.

As per the report, Investor diversity was a key feature of 2024’s Landscape. High-Net-Worth Individuals, Family Offices, and Private Hotel Owners Led the Charge, Contributing 51 per Cent of the Transaction Volume. Listed Hotel Companies followed closely at 34 per cent, while owner operators and real estate developers made smaller but significant contributions at 8 and 7 per cent respectively.

The number of Greenfield Projects in 2024 (28,281 Keys) crossed the full year of 2023 (13,600 Keys), indicating the enduring confidence of Hotel Developers in the Sector’s Long-Term Growth. Tier 1 Markets such as Mumbai, Bengaluru, Hyderabad, Pune, and Chennai Saw Signings of Hotels with 250 Plus Keys, Signalling sustained interest in these hubs due to robust domestic demand and thriving commercial activity.

“The first Quarter of 2025 has ignited a Dynamic Hotel Transactions Market. We have already facilitated two deals in Chennai and goa. Investor enthusiasm for both operational assets and land parcels underscore the sector’s attractiveness, buoyed by favorable economic conditions, expanding, expanding, expanding Commercial Markets, and the Government’s Recent Budget Push for Tourism. Hospitality Group, India, Jll.

Indian Hospitality Has demonstrated strong growth in Q4 (October-December) 2024, with the top six markets experience year-over-Year increases in Both average Rate (ADR) and Revenue by Available Room (Revpar). As per Jll, Hyderabad Emerged as the Standout Performer, Recording the Highest Revpar Growth at 23.3 per Cent mainly driven by a significant increase in ADR. Bengaluru also showed impressive resilience, with high revpar growth supported by improvements in both address and occupancy rates. As per JLL, the Q4 Quarter had seen substantial activity in Hotel Signings, with 99 New Hotels, Totalling 11,943 Keys Being Signed. Such Trends Indicate Continued Investor Confidence and Expansion in the Indian Hospitality Market.

As India’s Hospitality Sector Continues to Evolve and Expand, it is clear that the industry is not just recovering but thriving, with a bright future ahead in both established and emerging markets across the country.