Post Covid India has moved beyond recovery, setting new performance benchmarks and as of Q1 2025, the country had a pipeline of 690+ projects - the second-largest in the region, after China, and the largest in Asia Pacific.

Section 1 - Executive Summary & Sector Overview

1.1 India’s Hotel Sector: From Recovery to Reinvention

It's pertinent to note that pipeline figures in India often underestimate the economy/mid-tier projects in smaller towns/cities, as the sector is not fully organised, with rough estimates suggesting the total is at least double the size of the organised pipeline data.

This scale underscores India’s rising position in the Asia Pacific growth story.

This expansion reflects structural premiumisation, with luxury and upper-upscale segments driving pricing and occupancy. On the capital side, transactions totalled USD 340m in 2024—higher than its peers in Asia Pacific (US$280m , Japan). While Juniper Hotels’ IPO raised US$211 m / ₹1,800 cr) and Schloss Hotels 2025 listing raised US$409m confirmed robust institutional participation.

Sources: Lodging Econometrics Q1 2025; HVS ANAROCK 2025; JLL 2025; NSE/BSE filings; Reuters 2025

1.2 India’s ADR Inflexion Point: Global Headroom, Local Momentum

India’s hotel market is no longer a volume-first story. With occupancy, rates, and RevPAR now consistently rising across both metro and non-metro segments, the narrative is shifting — and fast. FY2024–25 closed with occupancy at 68.5%, ADR crossing US$100 (₹8,525, +5.8% YoY), and RevPAR reaching US$70 (₹5,845, +7.6% YoY).

These are strong domestic signals, but also mark a turning point for how India is positioned globally. In premium leisure destinations like Udaipur (US$188) and Goa (US$120), and corporate metros like Delhi and Mumbai (US$115–125), India is already operating at global benchmarks.

Yet at a national level, India still trails mature tourism economies. ADR remains below Singapore (US$ 165), Dubai (US$180), and the European Union & the United States average between US$130- 150 — indicating clear headroom for rate convergence.

Looking ahead, FY2025–26 projections point to further strengthening: occupancy approaching 70%, and ADR growth of 5–6%, led by urban corporate hubs and high-yield leisure corridors. At the same time, Tier-2 and Tier 3 cities are expected to deliver significant upside — driven by wedding demand, wellness travel, national highway expansion, and spiritual/pilgrimage circuits with long-stay potential.

India’s ADR trajectory is no longer speculative. With 8–10% RevPAR growth expected through FY2026, expanding luxury and upper-upscale segments, and robust domestic demand across business and leisure categories, India is becoming one of the world’s most investable rate stories.

The global market has long underestimated India’s pricing power. That’s changing — one metro, one destination, one spiritual circuit at a time.

Sources: STR/CoStar Global Hotel Review 2025; HVS ANAROCK Outlook 2025; Hotelivate India Trends 2024; Singapore Tourism Board 2024; Dubai Tourism Statistics 2024; U.S. Lodging Report – CBRE 2025; JLL Hotels & Hospitality Global Update 2024; Ministry of Tourism 2024–25; Press Information Bureau 2025

1.3 Top-End Dominance: Rates Lead the Recovery

India’s rate cycle is firmly premium-led. In CY2024, Udaipur posted the highest ADR at USD 188 (₹15,946), now on par with Bali (US$190) and approaching Southern Europe’s leisure resorts (US$200–220). Goa followed at US$115-120, maintaining positive RevPAR despite demand fluctuations.

Through Q2 2025, RevPAR rose 12.9% YoY. Bengaluru led with +29.4% YoY growth, driven by corporate travel and high-yield events. This places India ahead of Europe (5–6% RevPAR growth) and the United States (4%), confirming that luxury and upscale assets are sustaining both rates and profitability

Sources: Horwath HTL 2024; JLL Q2 2025.

1.4 Pipeline Strength—With Execution Watchpoints

Scale is assured: 693 projects are in development nationwide (Q1 2025). Yet the real challenge lies in execution and securing the right talent. Globally, this is not unique—the United States, with a ~200,000-room pipeline, faces similar talent shortages—but in India, the risks are sharper outside metros.

A post-COVID spurt saw, 64% of signings by keys in 2022, come from brownfield (36.5%) and conversions (27.7%), underscoring a tilt toward capital-efficient, asset-light growth. The differentiator will be how fast and effectively assets move from pipeline to operating reality. The trend of brown field conversions continues, especially in Tier 2/3 cities; however, the last few quarters have shown a noticeable increase in green field projects across the segments, pan India.

Sources: Lodging Econometrics Q1 2025; HVS ANAROCK 2022.

1.5 Demand Engine: Infrastructure, Aviation & Spiritual Circuits

Growth is being powered by aviation and highways. Operational airports doubled from 79 in 2014 to 157 in 2024, with a target of 350–400 by 2047. FY2025 saw 165.4 million domestic flyers—nearly equal to Ryanair’s 181 million passengers in Europe. Between January and July 2025 alone, 97.8 million travelled (+5.9% YoY), underscoring the sustained momentum of India’s aviation recovery. At the same time, highway expansion—23,800 km added since 2017, making India the world’s second-largest network—has reduced travel times across key corridors, boosting regional connectivity unlocking new tourism and hospitality demand.

Over the past decade, various highway expansion schemes like Bharatmala and Gati Shakti are unlocking drive-to leisure and spiritual hubs. New nodes scale fast: Ayodhya Airport hit 1.1 million passengers in its first year, Goa Mopa 4.6 million, while Delhi T3 is adding 50% international capacity by the end of 2025. Together, these build a multi nodal ecosystem, fuelling distributed MICE, leisure, and pilgrimage flows.

Sources: MoCA/PIB 2047 Vision; ICRA 2025; DGCA Jan–Jul 2025; AAI 2024–25; ToI 2025; MoRTH 2024–25.

1.6 Capital Flows & Investor Confidence

Investor appetite remains strong. 2024 saw US$340m (₹2,890 cr) in transactions, placing India ahead of peers in Asia Pacific. Schloss Hotels’ IPO (US$211m / ₹1,800 cr) was oversubscribed 6.2x in Aug 2025. Juniper Hotels IPO listing in February 2024 marked the arrival of yield vehicles in Indian hospitality.

While hotel stocks corrected 14% mid-2025, this reflected global volatility—similar corrections hit United States REITs—rather than domestic weakness. Medium-term flows are turning institutional, decentralised, and Tier-2/3-focused, aligning with domestic tourism demand.

Sources: JLL 2025; NSE/BSE 2024; Reuters 2025; ET; Moneycontrol 2025.

1.7 India’s Tourism Story: Scale, Soul, and Structural Momentum

India’s tourism sector has moved decisively beyond recovery and into reinvention. At the heart of this transformation is a model unlike any other in Asia — driven by deep domestic demand, a rising middle class, and culturally anchored, purpose-led travel, all backed by a generational leap in connectivity.

In 2024, India recorded nearly 3 billion domestic trips, placing it among the largest internal travel markets globally. This is structural, not cyclical — supporting hotel performance, aviation growth, and Tier-2/3 expansion. At the same time, foreign tourist arrivals (FTAs) reached 9.95 million, up 54% over two years, boosted by e-Visa reforms, air connectivity, and rising global interest in India’s differentiated offering.

Performance metrics confirm momentum: RevPAR is projected to grow 8–10% in FY2025 and 7–8% in FY2026, outpacing Europe (5–6%) and the United States (4%). While India’s absolute RevPAR (US$70) still trails mature markets (Europe US$100+, United States US$95), the upside is clear — particularly in Tier-2/3 cities, where infrastructure, weddings, spiritual tourism, and wellness are expanding demand.

Events like the Maha Kumbh 2025 are now economic engines; such a single mega event alone is expected to generate around US$25–30 bn( ₹2 2.5 lakh crore ). Uttar Pradesh’s tourism economy alone is projected to exceed US$45 bn, ( ₹4 lakh crore ), led by Ayodhya, Varanasi, and related spiritual & Heritage circuits, across the country.

Segment-wise, luxury and upper-upscale hotels are leading rate recovery, with ADRs up 20% YoY (2023–24). India’s US$3.6 bn luxury hospitality market (2025) is forecast to grow to USD 6.3 bn by 2030 (11.5% CAGR). Meanwhile, midscale and economy hotels remain essential volume drivers — especially for corporate and first-time travellers.

Enabling this growth is a decade of infrastructure gains. India has more than doubled its airports (from 74 in 2014 to 159 in 2024), while national highways and regional air links are connecting spiritual and heritage circuits with mainstream demand.

Yet India’s edge is not just scale — it’s soul. Travellers today want immersion over itineraries. Spiritual corridors like Rishikesh and Bodh Gaya, festivals like Diwali, Durga Puja and Holi, and cities like Varanasi — which saw a +76% YoY surge in search traffic — are becoming primary motivators. 82% of Indian travellers now cite culture as central to their trip planning — a demand pattern few global markets can match.

India is no longer catching up. It’s creating its own category. With purpose-driven travel, rising affluence, and infrastructure that both supports and stimulates demand, India is fast becoming a global long-cycle opportunity — where scale meets soul, and volume meets value.

Sources: Ministry of Tourism 2024; Press Information Bureau 2024–25; Hotelivate 2024; HVS ANAROCK Outlook 2025; Mordor Intelligence 2025; CareEdge 2025; Kotak Institutional Equities 2025; Business Standard 2025; STR/CoStar 2025; SBI Research 2024

Section 2 - India’s Tourism Story: Scale, Resilience & Global Trajectory

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