New Delhi, May 18 India’s hospitality sector saw exceptional momentum in 2025 with hotel investments of about $567 million across 28 transactions, up 67 per cent from the prior year, a report said on Monday.
The report from commercial real estate services firm JLL said institutional capital and private equity accounted for 35 per cent of transaction volume.
It further highlighted that high net‑worth individuals and family offices followed at 27 per cent, and listed hotel companies stood at 25 per cent, reflecting a sophisticated diversification of capital sources.
Tier II and III cities captured roughly 40 per cent of transaction volume and 71 per cent of branded hotel signings concentrated in emerging cities, the report added.
These markets featured premium assets, including luxury resorts in Rishikesh, upper-upscale properties in Goa, and upscale to midscale hotels across emerging urban centres such as Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.
Luxury and upscale segments dominated activity, representing 42 per cent and 41 per cent of transactions respectively, and 69 per cent of deals involving operational income-producing hotels.
Government initiatives present significant opportunities through land monetization at airports and government-led auctions in strategic micro-markets including Yashobhoomi (IICC), Neopolis in Hyderabad, Fintech City in Chennai, and Jewar Airport, the report said.
“India’s hotel investment market is reflecting a clear step‑up in both investor confidence and market depth, with rising transaction activity supported by a broader mix of institutional and domestic capital,” said Gaurav Sharma, Managing Director, Hotels, India & Senior Director, Hotels Capital Markets, Asia.
Sharma also highlighted the optimistic trend of continued expansion beyond gateway cities.
Meanwhile, strong asset performance has introduced a degree of supply-side discipline, with high-quality hotels being tightly held, making available opportunities more selective and highly sought after, he added.
The first quarter of 2026 showed accelerated momentum, with transaction volumes of about $185 million, up 58 per cent from $117 million a year earlier.
The report forecasted that a supportive policy environment, including land monetization initiatives and tourism-led infrastructure development, is expected to unlock new avenues for investment.
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