India’s leading hotel chains are significantly increasing investments to renovate and modernise their flagship properties, with industry consultants estimating that the combined refurbishment spend could reach ₹2,000–3,000 crore in FY27.
The renewed focus on upgrading marquee assets has emerged as a key strategy among listed hospitality companies, including Indian Hotels Company Ltd. (IHCL), EIH Ltd. and Lemon Tree Hotels Ltd. The companies have indicated during their fourth-quarter earnings calls that higher capital expenditure on existing properties will help strengthen pricing power, improve guest experiences and enhance profitability.
Rather than relying solely on expansion through new hotel openings, hotel operators are investing in premium upgrades to older properties to maintain competitiveness in a market witnessing robust demand from business and leisure travellers.
Industry experts believe refurbished hotels are better positioned to command higher room rates, improve occupancy and deliver stronger margins while extending the lifecycle of established hospitality assets.
The investment push comes amid sustained growth in India’s hospitality sector, with hotel companies balancing aggressive expansion plans alongside modernisation of legacy properties to cater to evolving customer expectations and premium travel demand.
