According to a report by ET, India’s hospitality sector is booming, driven by surging domestic travel and rising affluence. Major hotel chains are making bold investments to expand their portfolios. Dangayach Group is planning to add over 2,000 rooms, while Ambuja Neotia Group is heavily investing in West Bengal. With robust demand in tourism, weddings, and MICE (Meetings, Incentives, Conferences, and Exhibitions), the industry is experiencing record revenues and a wave of optimistic investment activity, with $340 million in hotel transactions recorded in 2024.
Encouraged by the growing demand for domestic travel in Asia’s third-largest economy, marquee Indian hotel chains are ramping up their investments.
Atul Dangayach, Managing Director of Dangayach Group, which is set to bring Hilton’s prestigious Waldorf Astoria brand to India, shared ambitious plans to invest heavily over the coming years. “We will add over 2,000 rooms in the next three years, while also launching the first Marriott hotel in Udaipur,” Dangayach said. The group currently manages 2,500 rooms and has partnered with Accor to develop two high-profile properties—Raffles and Fairmont hotels in Goa.
“Indian consumers are increasingly seeking new experiences, and we’re focusing on meeting their evolving expectations,” he added. “Our investments this year will also include refurbishments to enhance F&B offerings, gyms, and spas, catering to heightened guest expectations.”
The Ambuja Neotia Group, in collaboration with IHCL (Indian Hotels Company Limited), is making a significant push in West Bengal’s luxury hospitality space. With an investment of ₹1,700 crore, the company plans to develop 11 luxury properties across locations such as Kalimpong, Makaibari, Siliguri, and Rajarhat.
Additionally, the group is finalizing a ₹1,000-1,200 crore luxury project in New Town, Kolkata. “These projects are at various stages of planning, with construction set to begin soon,” said Chairman Harshavardhan Neotia. The group aims to complete these developments over the next five years.
Nikhil Sharma, MD and COO (South Asia) at Radisson Hotel Group, emphasized the role of growing demand across tourism, weddings, and MICE in driving investments. “Revenue per available room is expected to rise by 12-14% in 2025, driven by increasing average room rates and high occupancy,” Sharma said.
In 2024, hotel transactions reached $340 million, primarily focused on operational properties in business and leisure destinations, according to JLL India. “Investors remain optimistic, with plans to allocate substantial capital in 2025,” said Jaideep Dang, MD of JLL India’s Hotels and Hospitality Group.
In the last three years, publicly listed hotel companies have invested $150 million in the sector, bolstered by improving performance metrics.
DS Group has outlined plans to invest ₹1,000 crore in its hospitality division, aiming to double its room inventory by 2027. Nathan Andrews, the business head of DS Group’s hospitality division, highlighted the sector’s resilience and rapid growth over the past few years. The group is expanding its footprint with properties in Guwahati, Kolkata, and Corbett, as well as a new Radisson Blu near Kolkata Airport.
“We are funding growth through internal resources and strategic partnerships,” Andrews said.
Deepak Jain, founder of Mayfair Consultants, noted that economic growth, improved air connectivity, and infrastructural upgrades in tier-2 and tier-3 cities have played a pivotal role in boosting the hospitality sector.
“High-net-worth individuals and family offices are now showing greater interest in acquiring or developing hotel assets, diversifying their portfolios,” Jain said. He added that new entrants are developing greenfield projects, bringing fresh pools of capital into the industry.
Source: ET
