India’s hotel sector attracts US$ 185 million investment in January-March quarter, up 58%: JLL
- IBEF
- May 19, 2026
India’s hotel sector attracted investments worth Rs. 1,635.94 crore (US$ 185 million) in the January-March quarter of 2026, registering a 58% year-on-year increase, according to real estate consultant JLL. The sector had received investments worth Rs. 989.36 crore (US$ 117 million) in the corresponding period last year. The strong momentum reflects growing investor confidence in India’s hospitality industry, driven by rising travel demand, improving occupancy levels and expansion in branded hotel infrastructure. JLL noted that the positive investment trend continued from 2025, when hotel investment activity surged 67% year on year to Rs. 5,010.88 crore (US$ 567 million). During the latest quarter, transaction activity included investments in operating hotels, land monetisation and consolidation through acquisitions of operating platforms. A major transaction during the period was Warburg Pincus acquiring a 41% stake in Fleur Hotels, a subsidiary of Lemon Tree Hotels, along with a commitment of about Rs. 945.62 crore (US$ 107 million) to expand its portfolio of owned hotels.
JLL said investment momentum in the sector is expected to remain strong due to substantial liquidity among listed hotel companies and increasing participation from institutional and private equity investors. The consultancy highlighted that land monetisation at airports and government-led land auctions in key micro-markets such as Yashobhoomi in Delhi, Neopolis in Hyderabad, Fintech City in Chennai and Jewar Airport are creating fresh opportunities for hospitality investments. In 2025, the sector recorded 28 hotel deals worth around Rs. 5,010.88 crore (US$ 567 million), compared with Rs. 2,875.05 crore (US$ 340 million) in 2024. Tier-I cities accounted for nearly 60% of total investment volumes, while Tier-II and Tier-III cities contributed the remaining share. Branded hotel expansion also remained robust, with 103 branded hotels opened in 2025 and hotel signings rising 23% year on year to 51,647 keys across 424 properties.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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