India's hospitality sector saw investments worth US$ 401 million in 2023: JLL

India's hospitality sector witnessed a remarkable surge in investment, reaching a record US$ 401 million in the fiscal year 2023, as per a report by JLL. This represents a fourfold increase from the previous year, driven by a significant uptick in hotel signings and openings, with 25,176 keys signed and 12,647 opened. Notably, tier-II cities saw heightened interest in hotel development, accounting for 54% of total signings. The year also marked a milestone with 22 hotel transactions, the highest in a decade, while greenfield projects totalled approximately 13,600 keys, surpassing the previous year's numbers.

High Net Worth Individuals (HNIs) and Institutional Capital were key players in hotel investment, comprising 31% of total investment, followed by real estate developers at 27% and owner operations at 11%. Managing director of JLL's Hotels and Hospitality Group in India, Mr. Jaideep Dang, highlighted the exceptional performance in investments, new branded hotel openings, and signings. The report also indicates a robust start to 2024, with an 80% year-on-year increase in hotel transaction volumes, reaching US$ 78 million in the first quarter.

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