India's Hospitality Horizon: A Billion-Dollar Growth Journey

India's hotel industry is poised for significant growth, estimated to reach USD 31 billion by 2029. Driven by domestic tourism, the sector is benefiting from economic resilience, increased disposable incomes, and improved accessibility. Investment activity is expected to remain robust, with over 70,000 new keys projected by 2030.

The Indian hotel industry is on a promising trajectory, with market size estimates soaring to USD 31 billion by 2029, up from approximately USD 25 billion in 2024. This growth is fueled by a surge in domestic tourism, according to a recent report by CBRE.

Anshuman Magazine, Chairman & CEO for CBRE regions including India, emphasized that the hospitality sector's growth is a reflection of the nation's economic resilience, bolstered by rising incomes and enhanced travel accessibility. As the market shifts towards experience-driven travel, operators are tapping into demands around cultural and spiritual tourism.

The hospitality sector, despite challenges such as geopolitical tensions and operational setbacks in aviation, achieved a 64% occupancy rate in the past year. The Revenue Per Available Room witnessed an 11% surge, and investment interest is expected to continue through 2026, bolstering India's hospitality landscape.

(With inputs from agencies.)