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Indian Hotels Company Limited and Lemon Tree Hotels led hotel room additions in India during calendar year 2025, according to a report by HVS Anarock. A total of 14,199 branded hotel rooms were added during the year, marking a 5% increase over 2024. While overall room supply grew, new property openings declined to 176 from 200 in the previous year. Domestic hotel operators accounted for the majority of expansion, contributing 70% of new openings and 57% of total room additions. The data reflects sustained demand in the hospitality sector, driven by domestic travel and expansion beyond metro cities into emerging markets.
Indian Hotels Company Limited and Lemon Tree Hotels emerged as the leading contributors to hotel room additions in India during calendar year 2025, as domestic operators continued to drive supply growth, according to a report released by HVS Anarock. Advertisement
The report indicated that a total of 14,199 branded hotel rooms were added across the country during the year, reflecting a 5% increase compared to 2024. Despite the growth in room inventory, the number of new hotel openings declined to 176 properties from 200 in the previous year, suggesting a shift towards larger format developments and expansion within existing portfolios.
Indian Hotels Company Limited recorded the highest number of property openings, adding 30 hotels and approximately 3,000 rooms during the year. These figures exclude hotels that were added through acquisitions. Lemon Tree Hotels also expanded its footprint, increasing its inventory by 1,601 rooms with the opening of 21 hotels.
Domestic hotel operators accounted for 70% of new property openings and 57% of total room additions, highlighting their dominant role in the current expansion cycle. In contrast, international operators focused on larger-format developments, with an average hotel size of 117 rooms compared to 65 rooms for domestic brands.
Among international players, companies such as Accor, Marriott International, and Radisson Hotel Group were among the top contributors to room additions during the year.
In terms of geographic distribution, cities such as Mumbai, Udaipur, Bengaluru, Gurugram and Goa recorded the highest number of room additions in 2025, reflecting strong demand across both business and leisure destinations. The report also noted that Dehradun entered the top five cities for room additions during the year, replacing Gurugram.
Industry executives indicated that domestic tourism continues to be a key driver of growth in the hospitality sector. Demand has been supported by segments such as pilgrimage travel, weddings, concerts, and large-scale events, contributing to steady occupancy levels across markets.
The report highlighted that hotel development activity remained robust during the year, with brand signings reaching approximately 64,118 rooms across 586 properties. Expansion activity extended beyond traditional metro markets into tier-II and tier-III cities, supported by improving connectivity, rising local demand, and relatively lower development costs.
Neelendra Singh indicated that the company is expanding beyond metro cities in response to evolving travel patterns, with a focus on maintaining brand consistency while growing its network in emerging locations.
The data reflects a broader trend in the hospitality sector, where operators are aligning expansion strategies with changing demand dynamics, focusing on both established urban centres and emerging regional markets.
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