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JLL reports 67% rise in India hotel investments to USD 567 million in 2025

India’s hospitality investment market recorded strong growth in 2025, with hotel investments rising 67 per cent year-on-year to approximately USD 567 million across 28 transactions, according to JLL. The increase from USD 340 million in 2024 reflects growing investor confidence in India’s tourism and hospitality infrastructure, supported by demand across both metropolitan and emerging markets.

Institutional capital and private equity firms accounted for the largest share of transaction volumes at 35 per cent , followed by HNIs, family offices and private hotel owners at 27 per cent . Listed hotel companies contributed 25 per cent of activity, while real estate developers and owner-operators accounted for the remaining share.

Tier II and III cities emerged as major growth drivers, capturing nearly 40 per cent of total transaction volume. Markets including Ludhiana, Nashik, Vadodara, Udaipur and Lonavala saw increased activity across upscale and midscale segments, while luxury resort investments remained strong in destinations such as Rishikesh and Goa.

“India’s hotel investment market is reflecting a clear step-up in both investor confidence and market depth, with rising transaction activity supported by a broader mix of institutional and domestic capital. What is particularly encouraging is the continued expansion beyond gateway cities, with Tier II and III markets steadily evolving into more mature, investment-grade destinations backed by improving operating performance and scalability,” said Gaurav Sharma.

Operational hotels accounted for 69 per cent of total transaction volumes, highlighting investor preference for income-generating assets with established operating histories. Luxury hotels led the market with a 42 per cent share of transaction volume, followed closely by upscale properties at 41 per cent .

Branded hotel signings increased 23 per cent year-on-year to 51,647 keys across 424 hotels. Emerging cities accounted for 71 per cent of total branded signings by key count, underlining the continued expansion of organised hospitality beyond traditional gateway cities. Management contracts strengthened their dominance, representing 84 per cent of signings in 2025 compared to 81 per cent in the previous year.

Greenfield development also accelerated, reaching approximately 33,170 keys during the year, a 17 per cent increase over 2024 levels. Large-format hotels with more than 250 keys recorded 29 signings, up from 21 in 2024, with expansion extending beyond metro cities into Guwahati, Visakhapatnam, Indore and Pushkar.

The sector maintained momentum into 2026, with first-quarter transaction volumes reaching approximately USD 185 million, a 58 per cent increase compared to Q1 2025. Notable activity included Warburg Pincus acquiring a 41 per cent stake in Fleur Hotels, a subsidiary of Lemon Tree Hotels, with a USD 107 million commitment towards portfolio expansion.

Government-led infrastructure and land monetisation initiatives are expected to create additional opportunities across strategic micro-markets including Yashobhoomi, Neopolis in Hyderabad, Fintech City in Chennai and Jewar Airport. The FY 2027 tourism-focused budget and ongoing transport infrastructure upgrades are also expected to support future hospitality development and investment activity.

  • Published On May 18, 2026 at 02:01 PM IST

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Adani Airport, IHG sign Five-Hotel deal; Kimpton debuts in India

Adani Airport Holdings Limited (AAHL) and IHG Hotels & Resorts have signed a managed hotel portfolio agreement to develop five properties across airport-linked and high-growth urban destinations in India. The development will add close to 1,500 rooms across multiple brands and locations, aligned with IHG’s expansion strategy in the country.

The portfolio includes the India debut of Kimpton Hotels & Restaurants with a property in Jaipur. Additional hotels under the Holiday Inn and Holiday Inn Express brands will be developed within hospitality-led mixed-use projects linked to Adani Airport cities. These developments are planned across Navi Mumbai, Mangaluru, and Thiruvananthapuram. AAHL is also in advanced discussions with IHG to expand the partnership further.

The agreement marks the entry of Kimpton into India, a brand known for design-led properties and boutique positioning. Its launch reflects growing demand for premium lifestyle hospitality, particularly in urban and airport-centric developments. The expansion comes amid sustained growth in India’s aviation and tourism sectors, where airport-led infrastructure is emerging as a key driver of hospitality demand, supported by rising passenger traffic and business travel.

Pranav Adani, Director, Adani Enterprises Limited, said: “As the Adani Group expands its presence across hospitality and airport-led urban infrastructure, our vision is to create world-class destinations that seamlessly integrate travel, stay and urban experiences around India’s rapidly growing aviation ecosystem. We are building this platform in partnership with leading international hotel brands that bring global standards, operational excellence and scale. Our collaboration with IHG Hotels & Resorts, and the development of five hotels across key gateway destinations, marks an important step in strengthening high-quality hospitality infrastructure aligned with India’s long-term travel and economic growth.”

AAHL continues to position airports as integrated urban ecosystems, combining aviation with hospitality, retail and commercial infrastructure. Its airport city developments span approximately 663 acres across multiple locations, aimed at enhancing passenger experience while supporting long-term urban growth.

Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, said: “The partnership with Adani Airport Holdings reflects the scale of opportunity we continue to see in India’s hospitality sector, particularly across gateway cities and airport-led developments that are witnessing strong demand from business, leisure and transit travellers alike. With a mix of luxury, premium and essentials brands, this portfolio allows us to meaningfully strengthen our presence across high-growth markets across the country. This agreement also marks an important milestone for us with the introduction of Kimpton Hotels & Restaurants to India.”

IHG Hotels & Resorts currently operates 52 hotels across six brands in India and has a pipeline of 98 additional properties expected to open over the next three to five years.

  • Published On May 14, 2026 at 03:18 PM IST

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Why trust will define the future of digital travel?

Travel and tourism has historically grown at nearly twice the pace of a country’s GDP. India is no exception. As one of the fastest-expanding travel markets globally, the sector is riding on rising incomes, improving infrastructure, and a strong cultural inclination toward travel.

But while demand is accelerating, the industry is still evolving in how it builds and sustains long-term trust.

Today, more than 60-70% of Indian travellers rely on online platforms for planning and booking. What began as a utility-led transition has become the norm. Real-time comparisons, instant access to options, and seamless bookings have fundamentally reset traveller expectations.

However, that phase of differentiation is gradually maturing. These capabilities are no longer perceived as innovations; they are expected as a basic standard. The conversation is now expanding beyond access and efficiency to something more fundamental i.e. reliability across the entire travel journey.

Consumer sentiment reflects this shift. While travel intent remains strong, platform preference is increasingly shaped by how companies respond during disruptions. Service recovery and customer support have emerged as critical drivers of satisfaction. In a digital ecosystem where switching platforms takes seconds, even a single poor experience can influence long-term behaviour and brand perception.

From our booking data, this behaviour plays out across both domestic and international travel. We see similar patterns, where repeat usage is closely linked to how consistently post-booking experiences such as refunds and rescheduling are handled. On high-frequency domestic routes like Goa, repeat bookings are often driven more by past service experience than by pricing alone, especially when it comes to refunds and rescheduling.

For long-haul destinations such as Europe, travellers tend to be far more deliberate. We see higher levels of cross-platform comparison and a clear preference for platforms that offer transparency and reliability, given the higher ticket sizes and longer planning cycles. In both cases, trust becomes a stronger driver than cost.

A simple industry thumb rule is that travel and tourism grows at nearly double the pace of GDP. This momentum is also reflected in India’s broader trajectory. According to the World Travel & Tourism Council, the sector is expected to grow at around 7% annually over the next decade. This sustained expansion further reinforces the need for platforms to move beyond transactional efficiency and focus on building long-term credibility.

The Bharat opportunity: Why tier-2 & tier-3 cities are the future of intercity mobility

Consumers in smaller cities are seeking more than just basic travel options. Demand is rising for air-conditioned, safe, and technology-enabled bus services. As incomes grow, premium and reliable travel options that combine comfort with affordability are becoming increasingly important. This shift is opening the door for new business models and service improvements in intercity bus transport.

This shift is becoming even more visible among younger travellers. Discovery may begin on platforms, but decisions are increasingly influenced by reviews, shared experiences, and peer validation. At the same time, with AI becoming central to travel planning, expectations around transparency are rising. Travellers are not just looking for recommendations, now they want to understand them as well.

Despite this progress, there remains an opportunity for the industry to further strengthen the overall customer experience. Service recovery is often treated as a backend function rather than a core product experience. Areas such as refunds, customer support, and accountability remain key focus points for the industry as it works to align customer expectations with actual experience.

The implication is clear. The next phase of growth in travel will not be defined by who can acquire customers faster, but by who can retain their trust longer.

At the same time, trust today is multi-layered. It extends beyond service recovery into how platforms handle data, personalise experiences, and maintain transparency in AI-led systems. As travellers become more aware, explainability and data security are no longer optional, rather they are expected.

In this environment, reputation is no longer built through marketing alone. As platforms evolve, the focus increasingly lies in reducing friction and strengthening accountability across the travel journey. It is shaped continuously through every interaction, every review, and every shared experience. The platforms that will define the next phase of growth are not those that compete most aggressively on acquisition, but those that embed trust into every layer of their offering from product design to customer support.

Because ultimately, travel is not just a transaction. It is a commitment. And in a market defined by choice, trust is what turns that commitment into confidence and platforms into enduring brands.

The author is the CEO & Co-Founder of EaseMyTrip.

DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

  • Published On May 13, 2026 at 04:40 PM IST

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