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India's hospitality sector is projected to expand to approximately USD 31 billion by 2029 from around USD 24.6 billion in 2024, driven primarily by domestic tourism growth, according to a CBRE report. The consultant noted a 40% year-on-year rise in domestic travel, with visits reaching 4.1 billion in 2025. Listed hotel operators are expected to add more than 70,000 keys by 2030, indicating continued capacity expansion. The sector recorded stable performance metrics in the past year, with occupancy levels at about 64%, alongside increases in revenue per available room and average daily rates. CBRE indicated that investment activity is likely to remain steady through 2026, supported by sustained travel demand and institutional interest in scalable hospitality platforms.
India's hospitality sector is expected to grow to approximately USD 31 billion by 2029 from around USD 24.6 billion in 2024, according to a report released by CBRE in recent days, with domestic tourism identified as the primary driver of expansion. Advertisement
The report highlighted that domestic travel activity has seen a significant increase, with visits rising by 40% year-on-year to reach 4.1 billion in 2025. This surge in internal tourism has contributed to sustained demand across hotel segments, supporting overall market growth.
In terms of supply, listed hotel operators are projected to add more than 70,000 rooms by 2030. While the report did not specify the current inventory of operational rooms among listed players, the planned expansion indicates continued investment in capacity to accommodate rising travel demand.
CBRE noted that the sector maintained steady operational performance during the past year despite external challenges, including geopolitical tensions and disruptions in the aviation sector. Average occupancy levels across hotels stood at approximately 64%, reflecting stable utilisation across key markets.
Performance indicators also showed improvement, with revenue per available room (RevPAR) increasing by 11% year-on-year. Average daily rates (ADR) recorded a growth of 8.7% over the same period, suggesting a combination of pricing strength and demand resilience across hospitality assets.
Anshuman Magazine, Chairman and Chief Executive Officer for India, South-East Asia, the Middle East and Africa at CBRE, indicated that the sector's trajectory reflects broader economic resilience, supported by rising disposable incomes and improved accessibility across travel destinations. He added that the industry is increasingly moving towards experience-led travel formats, while also capturing institutional demand linked to spiritual and cultural tourism centres.
The report further stated that the hospitality sector is witnessing a shift towards organised and scalable platforms, attracting investor interest across asset classes. This includes both greenfield developments and expansion by established operators, particularly in cities and tourism-driven locations.
Looking ahead, CBRE indicated that investment activity in the hospitality sector is expected to remain active through 2026. The outlook is supported by continued travel demand, improving performance metrics, and sustained participation from institutional investors seeking exposure to income-generating real estate assets.
The findings reflect a phase of steady expansion in India's hospitality sector, driven by domestic demand fundamentals and supported by capacity additions and improving operating performance across the industry.
Source - PTI
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