India’s hotel investment market witnessed a significant upswing in 2025, with transaction volumes rising 67 per cent year-on-year to approximately USD 567 million across 28 deals, according to JLL’s Hotel Investment Trends in India: 2025report.
The report highlights growing investor confidence in the hospitality sector, driven by strong operating performance, expanding travel demand, and increasing interest from institutional investors and listed hotel companies.
Institutional capital and private equity investors emerged as the largest contributors, accounting for 35 per cent of total transaction volumes. High-net-worth individuals (HNIs), family offices, and private hotel owners followed with a 27 per cent share, while listed hotel companies contributed 25 per cent.
Luxury and upscale assets continued to dominate investment activity, accounting for 42 per cent and 41 per cent of total transaction volumes respectively. Around 69 per cent of all deals involved operational hotels, reflecting investors’ preference for income-generating assets.
While Tier I cities retained their dominance with nearly 60 per cent of total transaction volumes, Tier II and Tier III destinations accounted for the remaining 40 per cent, underlining the growing attractiveness of emerging hospitality markets. Key transactions included resort and hotel assets in destinations such as Rishikesh, Goa, Udaipur, Ludhiana, Nashik, Vadodara and Lonavala.
Beyond direct hotel acquisitions, 2025 also saw around USD 125 million deployed through strategic partnerships and platform investments. Notable deals included GIC and SAMHI Hotels’ joint venture, Marriott International’s investment in Concept Hospitality, and IHCL’s acquisition of majority stakes in ANK Hotels and Pride Hospitality.
The momentum has continued into 2026, with hotel transaction volumes reaching approximately USD 185 million in the first quarter alone, marking a 58 per cent increase over Q1 2025.
According to JLL, strong liquidity, growing institutional interest, airport-led development opportunities, and tourism-focused government initiatives are expected to sustain investment activity. However, the limited availability of high-quality hotel assets could create supply constraints, leading to increased competition and premium valuations for marquee hospitality properties.
