India's Hotel Sector Sees 58% Surge in Investments
According to JLL, investments in India's hotel sector have increased by 58% to USD 185 million in the January-March period of this year, with investors showing confidence in the growth potential of the hotel business.
Investment Trend in India's Hotel Industry
- Total investment volume reached USD 185 million in Q1 2026, a 58% increase from USD 117 million in Q1 2025.
- Investment in the hotel industry surged 67% to USD 567 million in 2025 compared to the previous year.
- Tier 1 markets accounted for 60% of the total investment volume, while tier 2 and 3 cities accounted for the remaining 40%.
Key Transactions in Q1 2026
- Warburg Pincus acquired a 41% stake in Fleur Hotels, a subsidiary of Lemon Tree Hotels, and committed USD 107 million to grow its portfolio of owned hotels.
- Land monetisation at airports and government-led land auctions in key micro-markets created new opportunities for investment activity.
Future Investment Prospects
- JLL expects the investment momentum to continue, driven by substantial liquidity among listed hotel companies and the expected capital market entry of additional hotel operators.
- Institutional capital/private equity is also looking to invest in the acquisition of hotel portfolios.
Hospitality Industry Performance in 2025
- A total of 103 branded hotels were opened with about 8,990 keys in 2025.
- Branded hotel signings totalled 51,647 keys across 424 hotels, representing a 23% rise from the preceding year.