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14 STATISTICS & ANALYSIS HOSPITALITY BIZ SEPTEMBER, 2024
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Hotel Investments Surge in H1 2024, Forecasted

to Reach USD 413 Million by Year-End: JLL Report

• Listed hotel companies dominated in the first half of 2024 (January -June), accounting
for 44% of the total transactions volume, followed by owner-operators (30%), and HNIs,
family offices & private hotel owners (26%).

• The year is expected to end on a strong note, at a forecasted volume of USD 413 million,
a 22% increase from the previous year.

• H1 2024 witnessed 19,442 keys in terms of branded hotel signings and 6,071 keys in
terms of branded hotel openings.

HBI Staff | Hyderabad revenue share agreements (3%). The number of greenfield
projects in the first half of 2024 (around 13,700 keys)
otel investments in the first half, January to surpassed the count for the entire year of 2023 (~13,600
June of 2024, reached USD 93 million, with keys), demonstrating the enduring confidence of hotel
Hforecasted volumes of USD 413 million for the developers in the sector’s long-term growth. Tier I markets
full year, a 22% increase from 2023, according to JLL’s Hotel such as Mumbai, Hyderabad, Pune, and Chennai witnessed
Investment Trends - India H1 2024. hotel signings with 250+ keys, indicating sustained interest
Of the transaction volume, approximately 72% in these cities due to strong domestic demand and thriving
were related to operational hotels, 23% involved under commercial activity.
construction hotels, and the remaining involved land leases. Furthermore, in H1 2024, a total of 6,071 keys were
During the first six months of 2024, six hotel transactions added through new hotel openings, with the midscale
were concluded, ranging from operational assets in Tier segment capturing the largest market share (46%), followed
I and leisure markets to land leases in airport district for by upscale (29%), upper upscale (12%), luxury (8%), and
greenfield development. economy (5%) segments.
JLL anticipates that the remainder of 2024 will continue “The first half of 2024 has paved the way for a
to benefit from the favorable trends observed in its first dynamic hotel transactions landscape for the rest of the
half. The second half of 2024 has already started positively, year, with the entire year’s forecasted volumes at USD
with two transactions facilitated by JLL in key hospitality 413 million, a 22% growth over 2023 volumes. Notably,
markets, totaling USD 70 million. Tier I markets remain JLL has already facilitated two significant transactions
robust, accounting for 78% of the projected transaction at the onset of second half of 2024, comprising an
volumes, while Tier II and III markets make up the operational hotel in Mumbai and a premium hotel
remaining 22%. land sale in Goa. The surge in investor interest for
Listed hotel companies led the hotel transactions in both - operating assets and land sales illustrate the
the first half of 2024, with the upscale segment claiming attractiveness of the investment landscape, bolstered
the highest share of the total transaction volume (44%), by favorable macro-economic factors, an expanding
followed by mid-scale (31%), luxury (23%), and economy commercial market, and improved air connectivity. This
(3%) segments. positive outlook is further reinforced by the substantial
In the first half of 2024, a total of 19,442 keys were hotel development activity witnessed across various tiers,
signed, with 83% of them located in Tier II and III cities. with over 19,440 keys signed in the first half of 2024
Management contracts accounted for the majority of alone,” stated Jaideep Dang, Managing Director, Hotels
signings (89%), followed by franchises (8%), and lease and and Hospitality Group, India, JLL n

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