India hotel deals may reach ₹4,200 crore milestone
India’s hotel industry is experiencing an unprecedented surge, with hotel transactional activity expected to touch ₹4,200 crore in 2025, based on the recent report by HVS Anarock. It follows strong demand, rising investor appetite, and an all-time high IPO pipeline, making it one of the most exciting times for the sector in more than a decade.
A number of key players are accessing the capital markets. Schloss Bangalore (Leela), Ventive Hospitality, and Brigade Hotels are said to be planning initial public offerings, together looking to raise more than ₹8,000 crore. This spurt in IPO activity reflects robust investor confidence in the Indian hotel sector, which has demonstrated consistent post-pandemic recovery.
Occupancy levels are likely to increase to 70% by 2026 from the current 63–65%, while average room rates may increase by as much as 30% to ₹7,800–8,000 a night. These gains indicate increasing domestic travel, growing middle-class incomes, and the increasing popularity of India as a business as well as a leisure destination.
ITC Ltd also plans to demerge its hotel business during Q4 FY25, which is likely to simplify operations and unlock value in its hospitality chain. Meanwhile, 2024 witnessed a record number of hotel brand signings that added almost 47,000 rooms to India’s future pipeline, a clear reflection of long-term optimism.
This steep increase in hotel investments and public offerings is being spurred on by a benign economic environment, shifting consumer trends, and strategic entry on the part of big conglomerates. Despite ongoing challenges in the form of regulatory obstacles and macroeconomic uncertainties, the sector looks set for long-term growth.
India’s hospitality industry is not merely recovering—it’s transforming itself as a dynamic, investment-grade arena, putting itself at the center of India’s wider economic revival.
