With India witnessing a surge in hotel investments , the country is projected to lead Asia Pacific , excluding China , in new hotel openings up to 2026 . In its latest study on hotel construction pipeline trend in the Asia Pacific region , Lodging Econometrics noted that India closed the second quarter with a record 610 projects with 75,280 rooms . This constituted 30 % of the overall projects in the total Asia Pacific pipeline . India ’ s stellar performance was followed at a distance by Vietnam ( 247 projects / 85,760 rooms ), Indonesia ( 181 projects / 31,550 rooms ), Thailand ( 163 projects / 38,350 rooms ) and Japan ( 162 projects / 30,122 rooms ).
Hotel investment volumes have posted an impressive jump in India , with the sector recording a total deal volume of $ 401 million , marking a four-fold increase from 2022 , JLL said in a report . The number of greenfield projects signed in India also soared by around 8,000 keys in 2023 , reflecting the sustained confidence of hotel developers in the sector ’ s long-term growth . High-net-worth individuals and institutional capital represented the biggest chunk of the investments ( 31 %) in 2023 , followed by real estate developers ( 27 %) and owner-operators ( 11 %). The last year saw a record number of hotel signings ( 25,176 keys ) and openings ( 12,647 keys ) across the country , with most of these signings concentrated in Tier-2 cities , JLL added . The total number of signings in Q4 2023 totaled 82 hotels representing 8,741 keys .
Like everywhere else , India ’ s RevPAR , ADR and occupancy suffered a massive blow between 2020 and 2021 . However , the industry bounced back from 2022 , with ADR and RevPAR outperforming pre-pandemic levels and occupancy levels showing considerable improvement .
RevPAR across the country grew by 15.8 % between October and December 2023 compared to the same period in 2022 , revealed a JLL report .
Hotel companies have been quick to respond to the growing Indian potential by building their portfolio in the country . IHG announced plans to double its estate in the next five years and has signed 13 new agreements across its luxury , premium and budget hotels sector in India . With its eyes on emerging markets , Hilton is also growing its portfolio and has unveiled plans to triple its Indian portfolio to 75 properties , up from 26 , in three to four years . The company already has 20 in the pipeline and is preparing to open up to six hotels this year . Marriott , which is one of the largest non-Indian hotel chains across India , recently opened its 150th hotel in India , following a record signing in 2023 and the first quarter of 2024 . Betting big on the spiritual tourism sector , Marriott is planning to open 12 hotels this year . The past year was also a significant one for Accor , which signed a record 11 hotels and added nearly 1,000 rooms to its Indian portfolio . With a current portfolio of 62 hotels , this year will see the French hospitality company opening six hotels in the premium , midscale and economy segments and three luxury and lifestyle hotels .
With the travel and tourism and hospitality industries experiencing phenomenal growth , the pattern is expected to continue . The significant increase in domestic tourism , uptick in destination weddings and celebrations , popularity of spiritual tourism , rising interest for leisure and business trips to India and expansion of the hospitality industry is expected to fuel growth .
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