Record public lists, forecasts for average room prices ₹10,000, trading activity is expected to surge ₹According to a report by hotel consulting firm HVS Anarock, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a year of strong expansion, it’s a
By 2026, hotel occupancy rates are expected to rise to 70% from 63-65% last year, with average housing prices likely to be from ₹The report is 7,800–8,000 per night, titled “HVS India Hospitality Industry Overview 2024” and is shared with MINT.
Hotel brand signatures (hotel chains or management companies formally agree to operate new or existing properties under their brand) surged 62% in 2024, adding about 47,000 rooms to future supply, the highest ever in the calendar year.
India currently has about 200,000 branded hotel rooms.
In 2024, Revenue per Available Room (REVPAR) Station ₹5,000–5,200, up 27–29% from the previous rotation level. While the recovery of inbound foreign tourism recovery is still slower than expected, domestic demand has promoted strong performance, with hotel development activities concentrating on small towns and emerging leisure markets.
According to Mandeep S. Lamba, South Asia president and CEO of HVS Anarock, the industry is expected to see record levels of investment in building and acquiring hotels, and several Marquee deals have been made. It is expected that the stock market will be listed in 2025 will also be promising. Last week, Prestige Hotel Ventures submitted a draft prospectus to the Securities and Exchange Commission of India (SEBI) ₹Through initial public offering (IPO), $200 billion.
Leela Palaces, Schloss Bangalore Ltd, the parent company of Hotels & Resorts, has also submitted a preliminary paper that values IPO ₹50 million.
Meanwhile, brand economy hotels (budget-friendly properties based on known brand names) have become a key area of growth. Although they currently account for only 5-7% of the planned hotel room supply, their presence is rapidly rising in smaller towns and cities due to the increase in value-driven travel demand.
“The country is moving towards becoming the fastest growing hotel market in the world, mainly because our organized hotel and branded rooms have lower penetration rates compared to other countries,” Lamba said.
Hotel transactions soar
The hotel industry will see a significant boost in 2025, with transactions expected to total around $500 million. ₹He said, 42 billion rupees. Signs of this momentum can already be seen. Earlier this week, Singapore’s sovereign wealth fund GIC announced its investment ₹Rs 752 crore, the acquisition of 35% of the five hotels owned by Samhi Hotels shows that large investors are interested.
In 2024, hotel transaction value jumped to $348 million, or about ₹Rs 29 billion, continuing the positive trend that began in 2023. Famous deals include the yard purchased by Chalet Hotels Limited in Arriott Aravali, Haryana ₹In March, Juniper Hotels Ltd. acquires 220 room properties near Bangalore Airport ₹October 28 billion.
Other important deals in the year include the BCM Group’s purchase of Golden Palms Resort and Spa, and the Samhi acquisition of Trinity Hotels in Bangalore. “In 2024, this strong momentum has led to record hotel signings with deal value of $348 million or around $348 million ₹Rs 29 billion,” Lamba said.
He added that the deals reflect a wide range of investors from real estate developers to hotel companies who all want to benefit from the industry’s growth. Bangalore and Mumbai are hot spots, accounting for more than 60% of the total transaction value in 2024, while Goa and Chennai also attracted considerable investor interest.
Hotel signings by the number of rooms to be added grow to 47,249 rooms in 2024, reflecting a 62% increase from the 29,143 keys recorded in 2023. This growth included the signing of 382 new properties (40,737 keys), the rebranding of 102 hotels (6,437 keys), and the expansion of one property, which added 75 additional keys to its inventory. Another key trend in 2024 is that the average number of rooms per property has risen significantly, with the average number of homes in that home rising to 98 rooms, up from 89 keys in 2023.
Increased operational performance
The hotel company reported to HVS Anarock that among all business areas, Health Services had the highest revenue growth in 2024, up 14.1% year-on-year. Food and beverage revenue rose 10.9%, while conference and banquet revenue rose 9.9%. These figures are even more stunning compared to pre-pandemic levels in 2019 – food and beverage revenues rose 32%, and conference and banquet revenues rose 36.3%.
“Hotels are increasingly leveraging high-margin ancillary services, and the industry is growing into a more diverse revenue ecosystem, and health, events and dining are becoming more important than ever,” he said. Large concerts and events have also contributed to this growth. Performances by Bryan Adams, Dua Lipa, Diljit Dosanjh and Arijit Singh, as well as major music festivals such as Lollapalooza, helped them drive travel and hotel bookings in hosted cities.
