Hotel investment trends in India
A spotlight on 2024, reflecting on 2023
- Adhiraj Guha
- Sailee Correa
The hospitality sector in India has experienced an impressive jump in hotel investment volumes, according to the latest data from JLL Hotels & Hospitality Group. In 2023, the sector recorded a total deal volume of USD 401 million, marking a four-fold increase from 2022.
The Hotel Investment Trends (HIT) 2023 outlines key insights from the sector including:
HNIs and Institutional Capital accounted for the largest volume of investments in 2023 (31%), followed by Real Estate Developers (27%) and Owner-Operators (11%).
NCLT resolution cases accounted for 33% of the total value of transactions for the year, which is equivalent to USD 133 million.
Investment momentum to persist throughout 2024, with an estimated additional volume of approximately USD 284 million.
In 2023, a record number of hotel signings (25,176 keys) and openings (12,647 keys) were witnessed. Most of these signings were concentrated in tier-2 cities (54%).
The number of greenfield projects in 2023 (~13,600 keys) crossed that of 2022 (~8,000 keys), indicating the sustained confidence of hotel developers in the sector’s long-term growth.
Strong commercial sector performance has directly benefited key urban centers – tier-1 cities saw the highest number of keys signed since 2020, with a notable 31% rise as compared to 2022.
