Growth in India’s Hospitality Sector
The hospitality industry in India is poised for significant growth, with local hotel chains planning to add over 70,000 rooms in the next five years. This forecast comes from a report by the consulting firm CBRE, which analyzed the market trends expected by early 2026.
A key factor driving this growth is the anticipated rise in domestic tourism, fueled by increasing incomes across the country. CBRE describes this change as a shift from recovering post-pandemic to a more stable phase, predicting that the market size of India’s hotel sector will increase from $24.6 billion in 2024 to $31 billion by 2029.
Rising Performance Metrics
In 2025, hotel occupancy rates improved to an average of 64%, leading to an 11% increase in revenue per available room (RevPAR) for the market. Average room rates also saw a boost of around 8.7%. This positive trend caught the attention of investors, resulting in hotel deals amounting to $456 million in 2025—more than double the total from the previous year.
Local companies are responding with their own expansion plans. For instance, the Indian Hotels Company is rapidly growing its brands, which include Taj, Vivanta, and Ginger. They recently opened a new 135-room Vivanta hotel in Vrindavan and another in Dehradun. Moreover, the construction of the 350-room Taj Indore and the Taj Sky View Hotel and Residences in Chennai is underway.
Luxury hotel group ITC is also on the rise after separating its hotel division from the main company. Their growth plans include a Welcomhotel in Gwalior and a unique Storii branded property in Jawai, which blends adventure camping with hotel accommodations.
Anshuman Magazine, CBRE’s chairman and CEO for the region, noted, “As the industry shifts towards experience-driven travel and caters to demands from spiritual and cultural hubs, we expect strong long-term growth for India’s hospitality sector.”
Major Brands Expanding Their Reach
International hotel groups are also keen to establish a stronger presence in India. Hyatt aims to double its hotel portfolio in the country by 2030 and is collaborating with Brigade Ventures for this expansion. Their plans include new Hyatt Regency hotels in Kasauli, Guwahati, Ghaziabad, and Surat.
Similarly, IHG is signing multiple agreements to introduce more of its brands to India. This year, they plan to open Holiday Inn hotels in Bodhgaya, Chennai, Prayagraj, and Udaipur, with many more planned for the future. Additionally, the luxury InterContinental brand will debut hotels in Kasauli, New Delhi, and Hyderabad, along with a resort in Kodaikanal featuring individual cottages.
Hilton is also focused on growing its footprint in India through strategic partnerships. Their Hampton by Hilton brand will expand thanks to collaboration with Royal Orchid Hotels, while Olive Hospitality will help introduce the Spark by Hilton brand to new locations.
As the hospitality landscape in India evolves, the future looks promising for both local and international hotel chains alike.
