Indian Hospitality Sector Set to Add 70,000 Rooms by 2030 as Institutional Investment Surges: CBRE
New Delhi, April 14, 2026: India’s hospitality sector is entering a phase of structural maturity, with listed hotel operators projected to add over 70,000 keys by 2030. According to the India Alternate Sectors Outlook 2026 report by CBRE South Asia Pvt. Ltd., the industry is transitioning from a post-pandemic recovery into a period defined by disciplined expansion and pricing stability.
The market size is expected to grow from $24.6 billion in 2024 to approximately $31 billion by 2029, fueled largely by a massive surge in domestic tourism, which saw 4.1 billion visits in 2025.
Industry leaders attribute this growth to a combination of rising wealth and better infrastructure. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, stated: “The hospitality sector’s trajectory is a testament to India’s economic resilience, supported by rising disposable incomes and improving accessibility facilitated by large-scale infrastructure development. As the industry accelerates its transition towards experience-driven travel and captures institutionalised demand across spiritual and cultural centres, we anticipate robust and long-term expansion for the country’s hospitality ecosystem.”
The sector maintained its momentum through 2025 despite challenges such as geopolitical tensions and aviation disruptions. Occupancy levels reached approximately 64%, while Revenue per Available Room (RevPAR) climbed 11% year-over-year. This financial performance was bolstered by a move toward premiumization; the Upper Midscale, Upper Upscale, and Upscale categories accounted for roughly 60% of all new openings during the year as consumers increasingly sought out luxury experiences.
Investment activity has also reached new heights, with total deal values in 2025 hitting $456 million—a 2.5-fold increase over the previous year. Institutional players are aggressively pursuing acquisitions, focusing on leisure destinations, pilgrimage centers, and emerging commercial hubs. Rami Kaushal, Managing Director, Consulting & Valuations, India, Middle East & Africa, CBRE, noted: “Institutional players are aggressively acquiring large stakes in the hospitality sector. Investor interest is increasingly shifting towards diversification into leisure destinations, pilgrimage centres, and emerging commercial cities with a constrained supply of branded inventory. The strategic realignment towards asset-light expansion models is enhancing the sector’s institutional appeal, paving the way for sustained consolidation and M&A activity as operators look to scale their platforms.”
Looking ahead through 2026, the industry is expected to see further consolidation and brand conversions of independent hotels. Developers are also shifting toward high-yield, experience-driven assets, including integrated mixed-use hubs and residential-style luxury offerings. This growth is being supported by recent policy shifts, including GST rationalization and Union Budget initiatives aimed at upgrading professional training and hospitality infrastructure across the country.
