India's hospitality sector attracts US$ 93 million investment in the first half of 2024

Hotel investments in India reached US$ 93 million in the first half of 2024, as reported by the JLL Hotel Investment Trends-India first half of 2024. Listed hotel companies led transactions, making up 44% of the total volume, followed by owner-operators at 30%, high-net-worth individuals (HNIs), family offices, and private hotel owners at 26%. The report forecasts total hotel investment volumes in 2024 to reach US$ 413 million, a 22% increase from 2023. The upscale segment dominated with 44% of the transaction volume, followed by mid-scale at 31%, luxury at 23%, and the economy segment at 3%. 6 hotel deals were finalized in the first half of 2024, with operational hotels accounting for 72% of the transaction volume. Managing Director, Hotels and Hospitality Group, India, JLL, Mr. Jaideep Dang, noted a surge in investor interest driven by favourable macroeconomic factors, expanding commercial markets, and improved air connectivity. JLL also facilitated 2 major transactions worth US$ 70 million in the early second half of 2024.

In the first half of 2024, 19,442 keys were signed, with 83% located in Tier-II and Tier-III cities. Management contracts led the signings at 89%, followed by franchises at 8%, and lease and revenue share agreements at 3%. Greenfield projects added around 13,700 keys, surpassing the 13,600 ones for 2023. Tier-I markets such as Mumbai, Hyderabad, Pune, and Chennai saw significant activity, with over 250 keys signed in each city, driven by strong domestic demand and rising commercial activity. Additionally, 6,071 keys were added through new hotel openings, with the mid-scale segment capturing 46% of the market share. The report indicates that Tier-I markets account for 78% of projected transaction volumes. In comparison, Tier-II and Tier-III markets represent 22%. The hospitality sector is expected to continue benefiting from the favourable trends observed in the first half of 2024.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.