India’s hospitality sector is poised to outpace global growth rates through the end of the decade, driven by robust domestic travel demand, rising incomes, sustained investment in tourism infrastructure, and the continued expansion of bleisure and MICE travel, according to Anirudh Reddy, Director, Viceroy Hotels.
Reddy said the industry delivered a strong recovery in FY2024–25, recording revenue growth of 7–9 percent and improving occupancies across premium and upper-upscale hotels, despite supply constraints in key urban markets. “Looking ahead, India’s hotel revenues are expected to grow at a 15–17 percent CAGR through 2030, nearly twice the projected global growth rate,” he noted.
Globally, the hospitality industry is entering a phase of steady expansion following the post-pandemic rebound. Travel and tourism are projected to contribute nearly US$15 trillion to global GDP by 2030, while the global hotel industry is expected to grow at a CAGR of 8–9 percent between 2025 and 2030, according to estimates from the World Travel & Tourism Council.
In India, domestic travel volumes are forecast to reach nearly five billion trips annually by 2030, supported by rising disposable incomes, expanding middle-class consumption, improved air and road connectivity, and continued public and private investment in tourism infrastructure. Together, hospitality and tourism are expected to contribute over ₹40 trillion to India’s GDP by the mid-2030s, as per projections from the India Brand Equity Foundation and WTTC.
Reflecting confidence in these long-term fundamentals, Viceroy Hotels recently announced the acquisition of Marriott Executive Apartments Hyderabad, strengthening its footprint in the premium and extended-stay segment. Revenue from the asset is expected to begin accruing from Q4, providing near-term earnings visibility alongside long-term growth potential.
Viceroy Hotels is targeting an expansion of its portfolio to 1,000 keys by 2030, supported by its current inventory of approximately 550 keys and the addition of nearly 200 keys through an upcoming greenfield development in Hyderabad.
