India Hotel Investment Activity Recap
Skift Take
India's hospitality sector in 2023 saw a record investment of $401 million, marking a near fourfold increase from 2022, with robust growth in hotel transactions, signings, and openings, particularly in tier-two cities, and an optimistic revenue growth forecast for FY2025 driven by spiritual tourism.
JLL's India's 'Hotel Investment Trends – India 2023' report showed India's hospitality sector witnessed a record $401 million worth of investment activity in 2023, a nearly fourfold rise compared to 2022. JLL said there were 22 hotel transactions last year, the largest number of assets traded in the last decade, with high-net-worth individuals and institutional investors contributing the most to transaction activity. The first quarter of calendar year 2024 has seen a significant 80% year on year rise in hotel transactions volume, reaching $78 million. In 2023, a record number of signings and openings took place, with 25,176 keys signed and 12,647 keys opened. Greenfield projects totaled 13,600 keys in 2023, up from 8,000 in 2022. They expect the strength of 2023 to continue in 2024 and JLL said there is an increasing interest in hotel development activity in tier-two cities, with 54% of the total signings taking place in those locations. About 25% of last year's overall valu
