JLL has reported a sharp rise in investment activity in India’s hotel sector, with investments increasing 58 per cent year-on-year to USD 185 million during the January–March quarter of 2026.
According to JLL’s latest report, Hotel Investment Trends in India: 2025, the sector had attracted USD 117 million during the same period last year. The consultancy noted that the strong momentum seen in 2025 has continued into 2026, driven by investor confidence in the long-term growth prospects of the hospitality industry.
The report stated that transaction activity in the first quarter included acquisitions of operational hotels, land monetisation deals and consolidation through platform acquisitions.
One of the major transactions during the quarter involved Warburg Pincus acquiring a 41 per cent stake in Fleur Hotels, a subsidiary of Lemon Tree Hotels. The investment firm committed nearly USD 107 million to expand the company’s portfolio of owned hotels.
JLL expects investment activity in the hotel sector to remain strong, supported by increased liquidity among listed hotel companies and the possible entry of more hotel operators into capital markets. The consultancy also observed growing interest from institutional investors and private equity firms in acquiring hotel portfolios.
The report highlighted that land monetisation projects around airports and government-led land auctions in emerging business hubs such as Yashobhoomi, Neopolis, Fintech City in Chennai and Jewar Airport are creating fresh investment opportunities in the hospitality market.
JLL further noted that hotel investment activity during the 2025 calendar year rose 67 per cent to USD 567 million across 28 deals, compared to USD 340 million in 2024.
The report said institutional investors and private equity firms dominated hotel transactions, followed by high-net-worth individuals, family offices, private hotel owners, listed hotel companies and real estate developers.
Tier-1 cities contributed nearly 60 per cent of the total investment volume, while tier-2 and tier-3 cities accounted for the remaining 40 per cent.
India’s hospitality sector also witnessed strong expansion in hotel development during 2025, with 103 branded hotels comprising around 8,990 rooms becoming operational. Additionally, hotel signings reached 51,647 rooms across 424 properties, marking a 23 per cent increase over the previous year.
