Investments in India's hotel sector increased 58 per cent to USD 185 million in the January-March period of this year, with investors being confident about the growth potential of the hotel business, according to JLL.
The hotel industry attracted USD 117 million in the year-ago period.
On Monday, real estate consultant JLL India released a report, 'Hotel Investment Trends in India: 2025', which mentioned that the investment last calendar year surged 67 per cent to USD 567 million, and the rising trend continued in the March quarter.
1 May 2026
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"Q1 2026 (January-March) has witnessed exceptional transaction activity, buoyed by continued investment momentum from 2025. The total volume reached about USD 185 million, a significant 58 per cent increase from around USD 117 million transaction volume recorded in Q1 2025," the report said.
The transactions in the quarter ended March included operating hotels, land monetisation and consolidation by acquisition of an operating platform, the consultant added.
During the January-March quarter, Warburg Pincus acquired a 41 per cent stake in Fleur Hotels (a subsidiary of Lemon Tree Hotels) and committed about USD 107 million to grow its portfolio of owned hotels.
JLL expects the investment momentum to continue, likely to be driven by substantial liquidity among listed hotel companies and the expected capital market entry of additional hotel operators.
Moreover, the consultant noted that institutional capital/private equity (PE) is also looking to invest in the acquisition of hotel portfolios.
"Land monetisation at airports and government-led land auctions in key micro-markets such as Yashobhoomi (IICC), Neopolis in Hyderabad, Fintech City in Chennai and Jewar Airport are creating new opportunities for investment activity," JLL said.
Talking about the 2025 calendar year, the consultant highlighted that investment activity in India's hotel industry surged 67 per cent over the previous year.
In total, 28 deals amounted to around USD 567 million, a significant jump from about USD 340 million recorded in the 2024 calendar year.
Institutional capital/PE-dominated transaction activity, followed by high net-worth individuals (HNIs), family offices and private hotel owners, listed hotel companies, real estate developers and owner-operators.
Tier 1 markets accounted for about 60 per cent of the total volume, whereas tier 2 and 3 cities together had a share of the remaining 40 per cent.
Last year, as many as 103 branded hotels were opened with about 8,990 keys.
During 2025, branded hotel signings totalled 51,647 keys across 424 hotels, representing a 23 per cent rise from the preceding year.
