India's listed hotel chains to add 70,000 rooms by 2030; deal activity surges 2.5x: CBRE
The report highlights that the sector is now moving beyond post-pandemic recovery into a phase of structural maturity
India’s listed hotel operators are set to add over 70,000 rooms (keys) by 2030, riding strong demand and a maturing hospitality market, according to CBRE’s India Alternate Sectors Outlook 2026.
The report highlights that the sector is now moving beyond post-pandemic recovery into a phase of structural maturity, marked by disciplined expansion and stable pricing.
Market growth and demand drivers
CBRE estimates the Indian hospitality market will grow from $24.6 billion in 2024 to around $31 billion by 2029. Growth is expected to be led by domestic tourism, which surged 40% year-on-year to 4.1 billion visits in 2025.
“The hospitality sector's trajectory is a testament to India's economic resilience, supported by rising disposable incomes and improving accessibility,” said Anshuman Magazine, Chairman & CEO (India, SEA, Middle East & Africa), CBRE. He added that experience-driven travel and demand across spiritual and cultural centres will fuel long-term expansion.
Strong performance metrics
Despite geopolitical tensions and aviation disruptions toward the end of 2025, the sector maintained momentum:
- Occupancy levels: Rs 64%
- RevPAR growth: 11% YoY (higher than 9% in 2024)
- ADR growth: 8.7%
Premiumisation trend dominates supply
Supply additions in 2025 leaned heavily toward premium categories.
Upper Midscale, Upscale and Upper Upscale segments accounted for nearly 60% of new hotel openings, reflecting rising consumer demand for high-end experiences.
Investment activity picks up pace
The sector has seen a sharp rise in institutional investments:
- Total hotel deal value in 2025: $456 million
- Growth: 2.5x from $184 million in 2024
This momentum is expected to continue, with investors focusing on portfolio acquisitions and large asset deals.
“Institutional players are aggressively acquiring large stakes in the hospitality sector,” said Rami Kaushal, Managing Director, Consulting & Valuations (India, MEA), CBRE. He noted growing interest in leisure destinations, pilgrimage centres, and emerging business cities.
Shift to asset-light and expansion strategies
Hotel operators are increasingly adopting asset-light models, such as management contracts and franchise partnerships, to scale operations while maintaining financial discipline.
At the same time, companies are exploring:
- Acquisition-led growth
- Expansion into tier-II and tier-III cities
- Conversion of independent hotels into branded assets
- Emerging trends shaping the sector
Developers are focusing on experience-driven, high-yield assets, including:
- Integrated mixed-use developments
- Luxury “hotel-at-home” residential offerings
The report also notes that spiritual and heritage tourism is emerging as a year-round demand driver, supported by infrastructure upgrades such as aviation expansion and high-speed rail projects.
Policy push and outlook
Recent policy measures are aiding growth:
- GST rationalisation (Sept 2025) improved affordability and occupancy
- Union Budget FY27 proposes upgrading hospitality education infrastructure
With strong travel demand, improving connectivity, and sustained investor interest, CBRE expects continued deal activity, consolidation, and long-term expansion across India’s hospitality sector through 2026 and beyond.
