India’s hotel investment market surges 67% to $567 million in 2025: Tier II - III cities drive expansion as institutional capital dominates growth: JLL

Institutional capital and private equity dominated at 35 percent of total volume, followed by HNIs and family offices (27 percent), and listed hotel companies (25 percent). Tier II and III cities capture 40 percent of transaction volume, with 71 percent of branded hotel signings (51,647 keys across 424 hotels) concentrated in emerging cities. Luxury and upscale segments dominated transaction volume at 42 and 41 percent respectively, with 69 percent of transactions involving operational income-producing hotels. Branded hotel signings increased 23 percent year-over-year to 51,647 keys, with greenfield development reaching 33,170 keys, surpassing 2024 by 17 percent. Large-format hotels (250+ keys) grew to 29 signings from 21 in 2024, expanding beyond metros into Guwahati, Visakhapatnam, Indore, and Pushkar. Government initiatives including land monetisation at airports and strategic micro-markets (Yashobhoomi, Neopolis, Fintech City, Jewar Airport) and the tourism-focused FY 2027 budget creating substantial investment opportunities.