India saw 367 new hotel signings and 154 new openings in 2024, marking a 14 per cent rise from the previous year, a report by real estate consultancy firm JLL, said, adding that the total transaction value is estimated to be ₹2,900 crore.
While the traditional tourism circuits continue with strong run, the emergence of tier II and tier III cities were noteworthy as they accounted for 50 per cent of the transactions, predominantly involving unbranded midscale properties.
This suggests a growing interest in developing hospitality infrastructure beyond the major metropolitan areas, JLL noted, adding the investment landscape saw diverse participation, with high-net-worth Individuals (HNIs), family offices, and private owners contributing 51 per cent of the investment volume.
The October-December quarter saw a significant shift towards tier II and III cities, which accounted for 75 per cent of new hotel signings. The midscale segment dominated, representing 53 per cent of hotel openings and 44 per cent of signings.
Uttar Pradesh led in signings, with 1,744 keys. Interestingly, HNIs, family offices and private owners contributed 51 per cent of the investment volume, indicating a growing interest from individual investors in the hospitality sector.
“Hospitality markets in India saw unprecedented activity in 2024. Backed by a strong domestic travel demand both in business and leisure segments, hotel investments saw several new groups attracted towards building new hotels, especially in tier II and tier III towns,” Jaideep Dang, managing director, hotels and hospitality group, India of JLL, said.
That demand, unleashed post Covid, which continues to outstrip supplies, was witnessed in strong operational performance as well with the top six markets experiencing year-over-year increases in both average daily rate (ADR) and revenue per available room (RevPAR). Hyderabad saw the highest RevPAR growth of 23.3 per cent in Q4 2024, backed by a strong uplift in the average daily rate, followed by Bengaluru and Delhi. (Source: The Telegraph)
