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The Indian hospitality industry is booming as homegrown brands announce major expansions. According to hospitality news and industry insights, foreign tourist arrivals surged by 43.5 percent in 2023, with expectations of 30.5 million by 2028. Q1 2024 saw a 5.5 percent RevPAR growth and over 90 branded hotel signings, primarily in Tier II and III cities. Leading players like Sayaji Hotels, Oyo, and IHCL are expanding across various locations, while government initiatives and infrastructure improvements bolster growth. Intertwined with real estate developments, the sector is poised to reach a market size of $541.70 billion by 2030, driving robust economic activity.
The Indian hospitality industry is experiencing a boom. Several homegrown brands recently announced plans for expansion. The sector has been a vital component of the country's economy, showcasing significant growth in the last decade. According to research published by NEXT IAS, in 2023 the hospitality industry benefited from a 43.5 percent increase in foreign tourist arrivals. Data suggests India can expect to receive up to 30.5 million foreign tourist arrivals by 2028. Advertisement
According to JLL's Hotel Momentum India (HMI) published in 2024, the sector witnessed a 5.5 percent growth in RevPAR in Q1 2024, compared to the previous quarter, with over 90 branded hotel signings. Over 75 percent of openings were in Tier II and Tier III cities such as Jaipur, Indore, Surat and Ayodhya. This trend appears to have continued in 2025.
Sayaji Hotels recently announced plans to launch 12,000 keys in 113 cities. This new phase of expansion targets Tier 2 and 3 cities such as Indore, Pune, and Udaipur. Another prominent player Oyo also announced plans to expand its footprint in India by introducing 500 hotels across religious destinations such as Ayodhya, Varanasi, Puri, Haridhwar and Mathura. Also in January this year, IHCL announced plans to open its first Gateway Hotel in Dehradun.
This year, events such as the Mahakumbh and Cold Play concert have created buzz in the industry. In January 2025, Navi Mumbai saw an unprecedented rise in hotel prices. According to a report by Sciative Solutions, budget accommodations saw a decrease in availability, while mid-range and luxury hotels witnessed substantial price hikes at more than two and a half times its regular tariff. Experts predict over 400 million people will attend the Mahakumbh, including 1.5 million foreign tourists. This is expected to generate a revenue of over INR 4 lac crores in economic activity across various sectors, most notably in hospitality.
In related hospitality news, several companies are looking to the public to fuel their expansion plans. Brigade Hotel Ventures, a subsidiary of Brigade Enterprises, recently received SEBI approval for its INR 900 crore IPO.
In this year's Union Budget, the government announced several initiatives aimed at boosting the hospitality and tourism sectors. A modified UDAN scheme was announced to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The government will also extend support to states for the creation of helipads and smaller airports in hilly, aspirational, and North East region districts. Top 50 tourist destination sites will be developed in partnership with states introducing streamlined e-visa facilities and MUDRA loans for homestays will be extended.
The hospitality industry in India is expected to expand significantly, with estimates suggesting it could reach a market size of approximately $541.70 billion by 2030. Factors such as the rise in wellness tourism, technological advancements, and an increase in domestic leisure travel are anticipated to drive this growth.Overall, the Indian hospitality sector is positioned for robust growth, supported by government initiatives and increasing demand for diverse travel experiences.
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