Luxury rush: Hospitality industry may add 1,00,000 keys in five years
- IBEF
- April 14, 2025
India's hospitality industry is poised for rapid growth, with sector executives predicting the addition of over 1,00,000 rooms in the next five years. This represents a 20-30% increase from 2024 levels. Chairman of Hotelivate, Mr. Manav Thadani, highlighted that while 7,000-8,000 rooms were previously added annually, the pace has now accelerated to 12,000-15,000 for branded hotels. The growing middle-income segment, a surge in domestic tourism, and a significant demand-supply gap in the Indian market fuel this expansion. According to the India Hotel Market Review 2024 by Horwath Hotel, Tourism and Leisure, the industry is expected to surpass 300,000 rooms by 2029. Major players are also expanding their portfolios: Ascott aims to double its rooms to 12,000 by 2028, while Hilton Hotels plans tenfold growth over the next decade.
Executives noted that the current period is one of the busiest for the sector, with over 200 hotels opening last year, adding 13,800 keys to the market. Marriott International reported that 70% of its signings in India were in the luxury segment, with the chain on the verge of becoming the third-largest global market for the company. Radisson Hotel Group also experienced a "golden" period for signings, with 36 deals last year and over 20 this year. Lemon Tree Hotels saw 50 signings in 2024, with revenue growing 15-20% YoY since the pandemic.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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