India’s Hospitality Sector Needs Up to 125 Million Sq. Ft. Real Estate by 2035: CBRE
New Delhi, October 22, 2026: India’s organised hospitality sector is projected to require approximately 120-125 million sq. ft. of additional real estate by 2035, according to a press release issued by CBRE Research on its latest report, Beyond Core: A 2035 View of India’s Alternate Sectors – Part I. This requirement is expected to translate into an incremental 190,000 to 210,000 hotel keys over the period.
The report notes a broad-based development cycle across economy, midscale, upscale, upper-upscale, and luxury hotel categories. According to CBRE, market selection, operating models, land availability, and alignment with evolving business, leisure, and experience-led travel demand will shape future growth opportunities.
“India’s hospitality opportunity is becoming increasingly diverse, with growth extending beyond traditional hotel markets and formats. As business, leisure and experience-led travel evolve, developers and operators are taking a more market-led approach to identifying opportunities. This involves understanding the demand drivers of each destination and building strong operating partnerships. The focus is moving beyond adding inventory to creating differentiated hospitality assets that remain relevant to changing traveller preferences and deliver sustainable long-term value,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.
Gateway cities account for roughly 35% of branded hotel inventory while generating nearly 50% of sector revenues, driven by corporate, MICE, and transit demand. Simultaneously, leisure, cultural, and spiritual destinations are creating scalable opportunities for resort-led and experience-driven formats beyond urban centres.
The press release highlighted that the hospitality sector attracted approximately USD 905 million in real estate investments between 2024 and H1 2026. Investor interest is shifting towards platform-level commitments, strategic joint ventures, and income-generating assets, while management contracts, franchise partnerships, brownfield acquisitions, and rebranding serve as primary expansion routes.
“Domestic tourism is emerging as a structural driver of India’s hospitality sector, supported by rising discretionary spending, improved connectivity and growing interest in leisure, wellness and destination-led travel. Operators are increasingly pursuing strategic premiumisation across luxury, lifestyle and resort formats to capture evolving traveller preferences. Supported by healthy demand fundamentals, this trend is expected to strengthen pricing power and support ADR growth across segments,” said Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE.
