India to Add One Million Hotel Rooms by 2029
Skift Take
India's organized hotel industry is set to exceed 3 million rooms by 2029, driven by religious tourism, rising incomes, infrastructure projects, and major airport developments.
The India Hotel Market Review 2024 by Horwath Hotel, Tourism and Leisure predicted India's organized hotel industry will add over 1 million rooms, surpassing 3 million rooms by 2029. They expect this growth to be driven by religious tourism, rising income levels, and infrastructure projects. The focus is on leisure and religious tourism hubs despite short-term challenges. Horwath expects major airport projects like Navi Mumbai and Noida International Airport (Jewar) to fuel demand, alongside growth in Bengaluru, Delhi, and Hyderabad. Mumbai will see major hotel openings this year, including Fairmont Mumbai and Hyatt Regency, further strengthening the sector. India's hotel market added 14,400 new rooms last year, with 67% beyond the top 10 markets. Leisure destinations formed 43% of the new projects, including a 12% rise in religious tourism hotspots. The financially listed hotel companies saw 36% average EBITDA margins in FY24, driven by food and beverage growth.
