India’s listed hotel operators are poised for a massive expansion, slated to add over 70,000 keys by 2030. According to a comprehensive report from CBRE South Asia Pvt. Ltd., the sector is entering a phase of structural maturity, marking a decisive shift beyond post-pandemic recovery. This robust growth is being underpinned by accelerating domestic tourism and substantial institutional investment.
Market Size and Revenue Surge Forecast
The overall market size of the sector is expected to increase significantly. CBRE forecasts that the market will climb from $24.6 billion in 2024 to approximately $31 billion by 2029. This ambitious growth trajectory is primarily fueled by the escalating demand generated by domestic travelers.Domestic tourism has proven to be a powerful catalyst, posting a remarkable 40 per cent Year-over-Year rise. The report noted that India recorded 4.1 billion domestic visits in 2025 alone.
Investment Activity and Premiumization Trend
Investment interest across the sector is seeing substantial growth and diversification. The total value of hotel deals grew 2.5-fold Year-over-Year in 2025, reaching roughly $456 million. Since 2024, the industry has witnessed a significant surge in investment, with large stakes being aggressively acquired by institutional players.The supply pipeline for 2025 demonstrated a clear preference for luxury experiences. Upper Midscale, Upper Upscale, and Upscale categories constituted about 60 per cent of all new openings last year.
Operational Resilience and Growth Metrics
The sector maintained strong growth momentum throughout 2025, despite year-end headwinds posed by geopolitical tensions and operational disruptions in the aviation industry. Occupancy averaged around 64 per cent in 2025.The revenue indicators remained positive, with revenue per available room surging 11 per cent Year-over-Year. Furthermore, average daily rates (ADR) increased by 8.7 per cent, signaling strong pricing power across the board.
Demand Drivers and Future Outlook
Industry experts point to the confluence of economic stability and travel preferences as key growth drivers. Anshuman Magazine, Chairman & CEO for CBRE, stated that the sector's trajectory is a "testament to India’s economic resilience." This resilience is supported by rising disposable incomes and improvements in accessibility driven by large-scale infrastructure development.The focus of investor interest is increasingly shifting towards specialized destinations. Rami Kaushal, Managing Director at CBRE, highlighted the shift toward leisure destinations, pilgrimage centres, and emerging commercial cities that have constrained branded inventory.
CBRE also notes that as the industry accelerates its shift toward experience-driven travel, it is capturing institutional demand across spiritual and cultural centres, forecasting robust and long-term expansion for the country's hospitality ecosystem.
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