India’s Branded Hotel Rooms to Surpass 3,00,000 by 2029: Report

Team Finance Saathi

11/Feb/2025

What's Covered Under the Article:

India’s branded hotel inventory will add over 1,00,000 new rooms, surpassing 3,00,000 rooms by 2029, fueled by religious tourism, infrastructure projects, and rising incomes.
67% of 2024’s 14,400 new rooms were outside India’s top 10 markets, with leisure destinations comprising 43% of new projects and a 12% rise in religious tourism hubs.
Financial growth continues, with hotel market capitalization surging 12x from 2015 to 2025, and IHCL contributing 40%. Listed hotel firms saw 36% EBITDA margins in FY24, mainly from food and beverage expansion.

India’s hospitality industry is set for record expansion, with the total branded hotel room inventory crossing 3,00,000 by 2029, according to the India Hotel Market Review 2024 by Horwath Hotel, Tourism and Leisure (HTL).

The sector is experiencing a boom in religious tourism, luxury and leisure destinations, and business travel, making India a key hospitality investment hotspot. Despite short-term economic fluctuations, the industry remains optimistic, focusing on mergers and acquisitions, premium pricing strategies, and high occupancy rates.

Expansion Driven by Tourism & Infrastructure Growth

The report highlights key drivers behind this growth, including:

Religious tourism: Increased demand in Ayodhya, Varanasi, Tirupati, and Shirdi
Leisure tourism: Goa, Kerala, and Himachal Pradesh see rising hotel investments
Business hubs: Bengaluru, Delhi, and Hyderabad remain corporate travel hotspots
Infrastructure projects: Navi Mumbai and Noida International Airport (Jewar) will boost hotel demand in Mumbai and NCR

Hotel Openings & Market Expansion

In 2024, India’s hotel sector added 14,400 new rooms, with 67% of them in cities beyond India’s top 10 hospitality markets. Leisure-focused projects accounted for 43% of the additions, while religious tourism destinations saw a 12% increase.

Mumbai is set for significant hotel openings in 2025, including:

Fairmont Mumbai
Hyatt Regency Mumbai
Other luxury and business hotels catering to growing demand

Financial Strength: Market Capitalization & Profit Margins Soar

India’s hotel market capitalization surged 12 times from Rs. 20,700 crore (US$ 2.37 billion) in 2015 to Rs. 2,50,000 crore (US$ 28.59 billion) in 2025. Leading the growth is Indian Hotels Company Limited (IHCL), which alone contributes 40% of market capitalization.

Financially, listed hotel companies reported an impressive 36% EBITDA margin in FY24, largely driven by the food and beverage segment, reflecting the growing trend of hotel dining and premium restaurant expansions.

Industry Outlook: Strong Growth & Investment

Despite inflationary pressures and economic uncertainties, the Indian hotel industry remains poised for sustained growth in 2025 and beyond. Factors ensuring steady expansion include:

Higher demand and occupancy rates
Stable room pricing strategies
Limited new supply maintaining high pricing power

With India’s hospitality sector witnessing strong investor interest, the focus remains on scaling operations, brand consolidation, and adapting to evolving traveler preferences.

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