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Report Overview
The India hospitality market was valued at USD 24.46 Billion in 2025. The market is expected to grow at a CAGR of 14.30% during the forecast period of 2026-2035 to reach a value of USD 93.09 Billion by 2035. Demand for branded mid-size hotels in smaller cities is growing fast. Operators are shifting to models that do not require buying land or buildings, which allows them to add rooms, and keep costs under control and service standards steady across sites.
Key Market Trends and Insights
- By region, the West India hospitality market accounted for 29.2% of the total revenue share in 2025.
- By segment, luxury hotels are expected to grow at a CAGR of 15.7% over the forecast period.
- By type, chain hotels are expected to exhibit a CAGR of 15.1% over the forecast period.
Market Size & Forecast
- Market Size in 2025: USD 24.46 Billion
- Projected Market Size in 2035: USD 93.09 Billion
- CAGR from 2026 to 2035: 14.30%
- Fastest-Growing Regional Market: South India
Domestic travel is increasing, including weekend breaks. Hotels are responding to this trend with flexible pricing structures for short-stay options. Corporate business trips, including for MICE (meetings, incentives, conferences), are also increasing in number, although companies are being mindful of their expenditure. Business hotels are improving their offerings to accommodate smaller-scale events, including hybrid events, boosting the India hospitality market value. For example, Lemon Tree Hotels Limited is expanding conference facilities in business centers, while also introducing branded residences and long-stay options for corporate clients and high-net-worth individuals.
In 2023, India recorded 9.24 million foreign tourist arrivals (FTAs), a growth of 43.5% compared to 6.44 million in 2022. As a result, the India hospitality market is evolving, with companies prioritizing asset-light expansion and affordable branded offerings. In August 2025, Indian Hotels Company Limited launched new Ginger brand units with simplified luxury features aimed at city-based business guests. The rooms were redesigned and digital check-in tools were added, which cut costs per guest room.
Hotel groups are adjusting their strategies in mid-sized market segments, mostly where customer demand recovers faster than the development timelines of high-end properties. An increasing number of collaborations between property owners and operators is accelerating demand in the India hospitality market. Many brands prefer leasing space over buying it outright. This lets them grow fast without needing large upfront investments. For instance, in May 2025, Marriott International, Inc. expanded its franchise plans into smaller Indian cities.
2025
Base Year
2019-2025
Historical Period
2026-2035
Forecast Period
Compound Annual Growth Rate
14.3%
Value in USD Billion
2026-2035
*this image is indicative*
|
India Hospitality Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
24.46 |
|
Market Size 2035 |
USD Billion |
93.09 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
14.30% |
|
CAGR 2026-2035 - Market by Region |
South India |
16.3% |
|
CAGR 2026-2035 - Market by Region |
West India |
15.3% |
|
CAGR 2026-2035 - Market by Type |
Chain Hotels |
15.1% |
|
CAGR 2026-2035 - Market by Segment |
Luxury Hotels |
15.7% |
|
2025 Market Share by Region |
West India |
29.2% |
Key Trends and Recent Developments
Asset-Light Expansion and Franchise-Led Growth
Hospitality firms in India are no longer buying properties. They now rely on management deals and franchise arrangements. OYO Rooms is refining its partner engagement model to maintain service quality while expanding its property portfolio. This India hospitality market trend lowers financial risk and allows faster growth. Owners are spending more on staff training and digital tools to align with this emerging trend. In March 2026, Club Mahindra expanded with nature-led resort designs in emerging destinations, integrating eco-sensitive architecture and immersive experiences, catering to rising demand for experiential travel.
Digitally Integrated Guest Experience Platforms
Several hotels are updating guest experiences with technology. ITC Hotels now uses mobile check-in and digital concierge at several locations. These tools reduce delays and improve daily operations. Adding AI to price settings helps increase income per room, accelerating the India hospitality market value. However, small hotels hesitate to use these tools owing to expense risks. Over time, this difference could grow between larger chains and independent businesses. In December 2025, Sapaad entered India with cloud-based restaurant platform, offering AI-driven analytics, POS systems, and scalable digital tools for organized F&B sector growth.
Rise of Branded Budget and Lean-Luxury Formats
Mid-scale and budget hotels are gaining more uniformity and a clear brand identity across the India hospitality market scope. Treebo Hotels is standardizing guest experiences while maintaining affordability to cater to price-sensitive travelers. Some properties now focus on basic comfort without additional amenities to suit cost-sensitive travelers. In July 2025, Indian Hotels divested Leanluxe Hospitality to Tata Sons, streamlining portfolio, enabling asset-light strategy, and accelerating expansion through group-led hospitality asset ownership platform.
Growth of Experiential and Destination-Based Hospitality
Hospitality is expanding beyond urban hotels, with chains like Club Mahindra investing in resorts focused on wellness and regional experiences. People now want planned activities instead of routine stays and operators are working with nearby towns and vendors to deliver authentic experiences. State tourism offices run advertisements and improve facilities to draw visitors, propelling the overall India hospitality market growth. In March 2026, SAMHI Hotels acquired majority stake in RARE India, entering experiential hospitality through asset-light model, expanding heritage portfolio and leveraging global distribution partnerships.
Integration of Sustainability and Green Building Practices
Sustainability is becoming a key focus area in terms of the India hospitality market development. The Oberoi Group has been incorporating energy-efficient systems and water conservation measures in new properties. Green certifications are gaining importance in attracting both guests and investors. Government policies encouraging sustainable construction are supporting this shift. Over time, sustainability is expected to become a standard requirement rather than a differentiator. In February 2026, Eco Hotels signed Dombivli greenfield project with 65–70 rooms, banquet facilities, and mixed-use development, targeting business and leisure demand growth.
India Hospitality Industry Segmentation
The EMR’s report titled “India Hospitality Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
- Chain Hotels
- Independent Hotels
Key Insight: Hotel categories have been changing according to the evolving needs of the guests. Chain hotels focus on consistency, scale, and corporate travel, stimulating the India hospitality market growth. Independent hotels focus on customization and flexibility, and they usually target experience-seeking travelers. Chain hotels target corporate travel and high-end travel, while independent hotels target niche segments and leisure travel. In May 2025, Minimalist Hotels announced plans of launching 20 new properties across India, expanding mid-market lifestyle segment with design-led spaces, targeting rising leisure travel demand.
Market Breakup by Segment
- Service Apartments
- Budget and Economy Hotels
- Mid and Upper Mid-Scale Hotels
- Luxury Hotels
Key Insight: Various segments of hotels are serving the purpose of meeting different customer requirements. Mid-scale hotels represent the largest segment because of their affordability and reliability. Budget hotels are focusing on volume, while luxury hotels are focusing on premium facilities, boosting the India hospitality market opportunities. Serviced apartments are emerging as a key segment, offering operational flexibility and catering to the growing demand for extended stays.
Market Breakup by Region
- North India
- South India
- East India
- West India
Key Insight: The regional dynamics are playing a major role in the development of the India hospitality market. West India is positioned at the forefront in terms of established business centers and demand consistency. South India is rapidly expanding its share in the market through IT-driven business travel and tourism. North India is benefiting from government and cultural tourism, while East India continues to be in a developmental stage. In December 2025, The Park Hotels announced INR 500 crore luxury Kolkata project on EM Bypass, featuring rooms, serviced residences, and lifestyle amenities, targeting launch in the year 2029.
India Hospitality Market Share
By type, chain hotels dominate the market due to brand trust and scale advantages
Chain hotels remain the leaders in the hospitality industry, owing to the high level of brand recall value. Chain hotels have the advantage of higher repeat business through the implementation of efficient systems. Corporate clients also prefer chain hotels for their reliability. Another reason for the success of chain hotels is the efficiency of procurement. For example, Indian Hotels Company Limited is growing through management contracts, which enables quick scaling. Moreover, these chain hotels remain the first choice for business as well as premium leisure travelers in the major cities of India. In July 2025, Ventive Hospitality and Marriott expanded partnership to develop six hotels in India by 2030, adding over 1,400 rooms across key cities.
Independent hotels are also gaining momentum across the India hospitality market scope, especially in the leisure segment. Independent hotels provide personalized experience. OYO Rooms, a hospitality chain, is attempting to aggregate independent hotels. Independent hotels have started using technology for efficient bookings. They have the advantage of flexibility in terms of pricing and design.
Mid and upper mid-scale hotels account for the dominant share of the market due to balanced pricing
Mid and upper mid-scale hotels retain the dominant position in the India hospitality market as they provide a good level of comfort and brand association at a reasonable price. Lemon Tree Hotels Limited has been growing rapidly in this segment by focusing on serving business travelers and domestic tourists. This segment of hotels are performing relatively well as their business model is optimized to deliver maximum margins. However, new players are trying to capture this opportunity and enter this segment with a similar pricing strategy. For instance, Tamara Hospitality expanded midscale hotels via Lilac brand in tier-2 cities, targeting rising domestic travel demand, faster occupancy, and scalable growth opportunities, in March 2026.
The service apartments segment of hotels is growing rapidly across the India hospitality market scope. This segment is attractive to long-stay travelers and corporates. Players like Oakwood Worldwide are expanding their footprint in India and focusing on serving the extended-stay segment. This type of accommodation provides more space and flexibility to customers compared to traditional hotels, while attracting cost-sensitive travelers. This segment is witnessing an increase in demand from relocating professionals and corporates. In September 2025, Marriott Executive Apartments launched Bengaluru UB City property with 190 serviced residences, targeting long-stay corporate travelers, offering flexible living spaces and premium amenities.
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Purchase the Regional Overview for USD 1099
If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.
India Hospitality Market Regional Analysis
|
CAGR 2026-2035 - Market by |
Region |
|
South India |
16.3% |
|
West India |
15.3% |
|
North India |
XX% |
|
East India |
XX% |
West India dominates the market due to strong business travel demand
West India, particularly Mumbai and the surrounding areas, secures a major share in terms of hospitality demand. The presence of financial centers ensures a steady inflow of business travelers. Marriott International, Inc. and other global hospitality chains have a significant presence in this region. Strong occupancy rates, driven by corporate travelers and international visitors, are boosting demand in the India hospitality market. Operators are working towards optimal pricing strategies to ensure profitability without allowing occupancy rates to vary significantly. In September 2025, Royal Orchid Hotels launched ICONIQA Mumbai, introducing upscale lifestyle hospitality with tech-driven services, immersive design, and experiential offerings for modern travelers.
South India is another hospitality hub that is growing fast. Bengaluru, Hyderabad, and Chennai, among other cities, are witnessing significant growth. Players like Accor S.A. are adding more hotels to their portfolio in this region, particularly in the mid-scale and premium segments. The IT sector is another major growth driving factor as ongoing business travel ensures steady occupancy. Tourism in Kerala and Tamil Nadu is further supporting growth as infrastructure improvements enhance connectivity. This regional market observes distributed demand across multiple cities rather than concentration in a single location.
Competitive Landscape
The market is becoming more organized, although the market remains competitive. Prominent India hospitality market players are now focusing on asset-light facility expansion and digitalization. ITC Hotels and others are now investing in sustainability and premium experiences. On the other hand, the mid-scale players in the market are now focusing on volume growth, and the market is witnessing more partnerships between hotel companies and real estate developers. This is helping the market to execute the projects faster.
Technology is now becoming more relevant to the industry. The market is witnessing the use of dynamic pricing, booking systems, and personalization tools. Companies are witnessing growth opportunities in tier 2 and tier 3 cities. India hospitality companies that will be able to strike the right balance between costs, service, and speed are expected to gain better market positioning in the coming years.
ITC Hotels
Established in 1975 and headquartered in Gurugram, India, ITC Hotels is currently focusing on sustainable luxury. The hotelier is using green building technology and digitalization for guests, targeting high-end customers while enhancing efficiency in the increasing hotel portfolio.
Oberoi Hotels & Resorts
Established in 1934 and headquartered in Delhi, India, Oberoi is a high-end hotelier focusing on luxury hospitality. The hotelier provides high-end services to guests. It continues to grow and increase its hotel portfolio, ensuring exclusivity.
Taj Hotel
The company was established in 1902 and is based in Mumbai, India. The Indian Hotels Company Limited manages the Taj brand and is expanding through asset-light models and focusing on mid-scale and premium segments. The company is also investing in digital and loyalty programs to increase customer engagement.
The Leela Palaces, Hotels & Resorts
The Leela Palaces, Hotels & Resorts was established in 1986 and is based in Mumbai, India. The company is focused on ultra-luxury hospitality and has become a leading player in this particular segment. The company places significant emphasis on architecture and heritage, while personalized experience remains an important aspect.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market include Lemon Tree Hotels Ltd., Hyatt Hotels Corporation, Marriott International Inc., Radisson Hotels, OYO Rooms, and Hilton Hotels Corporation, among others.
Key Highlights of the India Hospitality Market Report
- Analysis of evolving hotel formats including lean-luxury and extended-stay concepts.
- Insights into digital transformation across booking, pricing, and guest engagement systems.
- Detailed competitive landscape covering organized and emerging hospitality players.
- Regional insights highlighting new growth corridors beyond traditional metro cities.
- Strategic outlook focusing on asset-light expansion and operational efficiency improvements.
Why Rely on Expert Market Research?
- Strong domain expertise in hospitality and travel industry analysis.
- Tailored insights designed to support investment and expansion decisions.
- Reliable research methodology combining primary and secondary data sources.
- Actionable recommendations aligned with real market dynamics and trends.
Call to Action
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Key Questions Answered in the Report
In 2025, the India hospitality market reached an approximate value of USD 24.46 Billion.
The market is projected to grow at a CAGR of 14.30% between 2026 and 2035.
The key players in the market include ITC Hotels, Oberoi Hotels & Resorts, Taj Hotel, The Leela Palaces Hotels & Resorts, Lemon Tree Hotels Ltd., Hyatt Hotels Corporation, Marriott International Inc., Radisson Hotels, OYO Rooms, and Hilton Hotels Corporation, among others.
Expanding into tier-2 cities, adopting asset-light models, enhancing digital guest journeys, optimizing pricing strategies, and investing in sustainable operations to improve efficiency and attract diverse traveler segments.
Rising operational costs, inconsistent service standards, and dependence on seasonal demand are major challenges. Talent retention and maintaining profitability across expanding portfolios also remain ongoing concerns for operators.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Segment |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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