India’s hospitality sector demonstrated remarkable resilience and growth in 2024, maintaining investment levels on par with the previous year with 42,071 new hotel keys, a report showed on Monday. The year 2024 saw approximately 25 deals, primarily involving operational properties in both business and leisure destinations, according to JLL’s latest analysis.
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 per cent and 7 per cent, respectively.
According to the report, what’s particularly noteworthy is the significant shift towards tier 2 and 3 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.
“The first quarter of 2025 has ignited a dynamic hotel transactions market, with JLL already facilitating two deals in Chennai and Goa. Investor enthusiasm for both operational assets and land parcels underscore the sector’s attractiveness, buoyed by favourable economic conditions, expanding commercial markets, and government’s recent budget push for tourism,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
Following 2024’s record-breaking year in hotel investments, openings, and signings, 2025 has commenced strongly and is further expected to maintain this momentum, Dang added.
The industry’s growth is further evidenced by the impressive number of branded hotel signings, totalling 42,071 keys in 2024. Remarkably, 77 per cent of these signings were concentrated in tier 2 and 3 cities, underlining the sector’s expansion beyond traditional urban centres.
Management contracts dominated these agreements, accounting for 81 per cent of the total keys signed, while franchises and lease/revenue share agreements across tiers stood at 14 per cent and 5 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, said the report.
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