The Indian hospitality industry is experiencing significant growth in branded hotel rooms, particularly in major cities and popular tourist destinations. According to the data from Hotelivate, Dehradun leads this growth, with a staggering 67.5% increase in branded rooms, reaching 1,236 rooms in FY2023/24.
Navi Mumbai follows with a 34.4% growth, now offering 1,642 rooms, while Agra, Jaipur, and Udaipur recorded increases of 20.1%, 18.1%, and 16.7%, respectively. Meanwhile, key markets such as Mumbai and Goa, with their large inventory of branded rooms (15,234 and 9,223, respectively), grew at a steady pace of 9-12%.
The report highlights that average occupancy rates remain strongest in tier-I cities, at 73.6%, but significant growth is also being recorded in tier-II and tier-III cities, where occupancy rates stand at 66% and 57.4%, respectively.
With the total number of branded rooms in India expected to increase from 180,500 to 250,000 by FY2028/29, emerging markets like Amritsar, Lucknow, and Noida are predicted to contribute significantly to this expansion, alongside Dehradun and Navi Mumbai. Notably, tier-III cities are projected to account for nearly 50% of this growth, with the North and West regions of India driving the expansion.
