According to a report by Skift, In 2024, nearly 25 hotels across India changed ownership in multi-million-dollar deals, highlighting the robust recovery and dynamic growth of the country’s hospitality industry. According to real estate consultancy JLL, these transactions primarily focused on operational properties in Tier-2 and Tier-3 cities, signaling a strategic shift toward expanding footprints in emerging markets.
The majority of these deals involved 3-star and 4-star properties, showcasing the growing demand for mid-tier accommodations. “There is significant capital available for hotel investments, and yields are much more attractive than in previous years,” said Jaideep Dang, managing director of JLL’s Hotels and Hospitality Group. While the 5-star and luxury segment saw limited activity, the mid-range category has become a lucrative investment area.
This surge in transactions underscores a broader trend in India’s hospitality landscape: the increasing focus on business and leisure destinations outside traditional metros. The rise of Tier-2 and Tier-3 cities as commercial hubs has fueled demand for quality accommodations, supported by improved infrastructure and growing disposable incomes.
The robust activity reflects confidence in India’s hospitality sector as it rebounds post-pandemic. With continued interest from investors, the sector is poised for sustained growth, offering both opportunities and challenges in a competitive market.
source: Skift
