The hospitality sector in India witnessed transaction activity worth Rs. 2,943.38 crore (US$ 340 million) in 2024, according to data provided by JLL. In 2023, the sector saw Rs. 2,917.41 crore (US$ 337 million) worth of deals, while in 2022 and 2021, transaction activity totalled Rs. 657.93 crore (US$ 76 million) and Rs. 95.23 crore (US$ 11 million), respectively. JLL facilitated 30% of the transaction volume valued at over Rs. 865.70 crore ($100 million). These transactions included operational and high-yielding hotels in Mumbai and Bengaluru as well as a premium hotel land sale in Goa. Notably, tier-II and tier-III cities accounted for about 50% of the transactions 2024. These deals included unbranded mid-scale-to-lower category hotels in smaller cities such as Amritsar, Mathura, Bikaner, Kolhapur, Lonavala, Mahabaleshwar, Shirdi, and Tirupati.
The investor landscape was diverse, with high-net-worth individuals (HNIs), family offices, and private hotel owners accounting for 51% of the volume. Listed hotel companies followed at 34%, while owner-operators and real estate developers contributed 8% and 7%, respectively. Jaideep Dang, Managing Director of Hotels and Hospitality Group at JLL India, said: "JLL had estimated Rs. 3,774.45 crore (US$ 436 million) of investment activity, but a couple of high-ticket potential transactions spilled over to 2025, wherein conversations are ongoing." He added that stronger room rates, stabilised occupancies, and improved gross operating profit (GOP) margins, backed by strong domestic travel demand, will continue strengthening the sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.