India’s Hospitality Boom: 42,000+ New Hotel Keys Unlocked in 2024

India’s hospitality sector achieved a remarkable milestone in 2024, adding over 42,000 branded hotel keys, signaling robust growth and resilience. According to JLL’s latest analysis, this expansion was driven by a surge in investments and a strategic shift towards Tier II and III cities, which accounted for nearly 77% of the new signings.  

 

The year saw approximately 25 major deals, primarily involving operational properties in both business and leisure destinations. High-net-worth individuals, family offices, and private hotel owners led the investment charge, contributing 51% of the transaction volume. Listed hotel companies followed closely at 34%, while owner-operators and real estate developers made smaller but significant contributions.  

 

Greenfield projects also witnessed a significant uptick, with over 28,000 keys signed in 2024, surpassing the 13,600 keys signed in 2023. Tier I cities like Mumbai, Bengaluru, Hyderabad, Pune, and Chennai continued to attract interest, with hotels featuring 250+ keys being signed in these hubs.  

 

This growth reflects the sector’s ability to adapt and thrive, supported by favorable economic conditions, government initiatives to boost tourism, and a growing demand for quality accommodations in underserved markets. The momentum is expected to continue into 2025, with the first quarter already showing promising signs of further expansion.  

 

Sources: JLL India, Daily Excelsior, Hospitality Biz India