The recent terror attack in Pahalgam is set to disrupt the hospitality sector in Jammu and Kashmir, delaying new hotel openings and impacting investor confidence. According to HVS Anarock, the region’s current branded hotel supply of 3,000 keys was expected to grow by over 1,200 keys by 2029.
The incident has cast a shadow on the optimism that followed the revival of tourism in the union territory, with brands like Indian Hotels and Radisson expanding their presence. “Immediate openings may be delayed, and investments in areas like technology upgrades could be paused,” said Aditya Sanghi, CEO of Hotelogix.
Atul Thakkar, Director of Investment Banking at Anand Rathi Advisors, added that investment decisions are closely tied to perceptions of peace. “The attack has created hesitation among investors, potentially delaying planned projects,” he said.
The attack also triggered a dip in the shares of hospitality firms such as Indian Hotels and Lemon Tree Hotels, which saw declines of 1–3%. The setback comes as the region was poised for growth, with major metro brands targeting Jammu and Kashmir’s burgeoning tourism potential.
source: Money Control
