India's branded hotel rooms inventory to cross 3,00,000 by 2029: Report
- IBEF
- February 11, 2025
India’s organized hotel industry will add over 1,00,000 rooms, surpassing 3,00,000 rooms by 2029, driven by religious tourism, rising income levels, and infrastructure projects, according to the India Hotel Market Review 2024 by Horwath Hotel, Tourism and Leisure (HTL). The focus is on leisure and religious tourism hubs, with optimism despite short-term challenges. The hospitality sector is adapting by targeting 80% plus occupancy rates in business cities and through mergers and acquisitions. Major airport projects like Navi Mumbai and Noida International Airport (Jewar) will fuel demand, alongside growth in Bengaluru, Delhi, and Hyderabad. Mumbai will see major hotel openings 2025, including Fairmont Mumbai and Hyatt Regency, further strengthening the sector.
In 2024, India’s hotel market added 14,400 new rooms, with 67% beyond the top 10 markets, showing broad-based growth. Leisure destinations formed 43% of new projects, including a 12% rise in religious tourism hotspots. The sector's market capitalization rose 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, with Indian Hotels Company Limited (IHCL) contributing 40%. Financially, listed hotel companies saw 36% average Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins in FY24, driven by food and beverage growth. Despite economic factors, India’s hotel market is set for strong 2025 growth, with higher demand, steady room rates, and limited new supply boosting occupancy and pricing.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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