The India Hospitality Market Segmented by Type (Chain Hotels, Independent Hotels, and Others), Accommodation Class (Luxury, Mid & Upper-Mid-Scale, and Others), Booking Channel (Direct Digital, Online Travel Agencies (OTAs), and Others), Geographic Region (North India, West India, and Others). The Market Forecasts are Provided in Terms of Value (USD).

In 2025, India's hospitality market was estimated to be valued at nearly *** billion U.S. dollars. This was projected to reach over *** billion dollars by 2030.

The Indian hotel industry is a rapidly growing market, with a market size valued at USD 247.31 million in 2025. The industry is expected to expand at a CAGR of 13.96% during the forecast period of 2025-2033. The growth of the industry can be attributed to several factors, including rising disposable incomes, increased tourism, and a growing middle class. The industry is also witnessing a shift towards online bookings and loyalty programs. Key trends driving the growth of the Indian hotel industry include the increasing popularity of budget and economy hotels, the expansion of service apartments, and the growing adoption of technology. The industry is also facing certain challenges, such as the high cost of land and labor, and the competition from international hotel chains. Despite these challenges, the Indian hotel industry is expected to continue to grow in the coming years, as it benefits from the country's strong economic growth and rising disposable incomes. The major players in the Indian hotel industry include Oberoi Hotels and Resorts, ITC Hotels, Lemon Tree Hotels, Taj Hotels, The Leela Palaces Hotels and Resorts, OYO Rooms, The Park Hotel, Radisson Hotel Group, Hyatt Hospitality company, and Marriott International Inc. Recent developments include: In March 2024, Suba Group of Hotels launched its third hotel i.e., Click Hotel, in Pithampur, Madhya Pradesh, designed to cater to the new age business travelers and features 63 premium contemporary rooms and suites., In February 2024, Radisson Hotel Group announced the signing and opening of the first internationally branded hotel in Ayodhya-Park Inn by Radisson Ayodhya., In September 2023, Parkside Hotels & Resorts announced its intentions to grow its collection by securing contracts for a minimum of 20 hotels in India by the conclusion of 2024.. Key drivers for this market are: Growth in Travel and Tourism in India, Increase in the Number of Hotel Projects. Potential restraints include: Lack of Skilled Labor is a Challenge for the Market, Sustainability and Competition Threaten Industry Success. Notable trends are: Increase in the Number of Hotel Projects is Driving the Market.

The hotel market in India was valued at around ** billion U.S. dollars in financial year 2020. This was projected to grow to around ** billion U.S. dollars by 2027. Around ** percent of the revenue came from domestic market during the same time period.

The India Luxury Hotel Market Report is Segmented by Room Type (Standard Luxury Room, Suites, Villas/Bungalows, Penthouses & Presidential Suites), Booking Channel (Direct Booking, Online Travel Agencies, and More), Service Type (Business Hotels, Airport Hotels, and More, and Geography (North India, South India, West India, East & North-East India). The Market Forecasts are Provided in Terms of Value (USD).

India Hospitality Market size was valued at USD 2.47 Billion in 2024 and is projected to reach USD 5.88 Billion by 2032, growing at a CAGR of 10.10% from 2026 to 2032.Key Market Drivers:Rising Domestic Tourism and Travel Expenditure: Domestic tourism is fueling growth in India's hotel industry. Domestic tourist visits reached 1.73 billion in 2022, indicating a recovery from the pandemic. Furthermore, India's middle class is projected to spend USD 215 billion on travel by 2030, up from USD 75 billion in 2019.Growing Business Travel and MICE Segment: Business travel and MICE activities are driving the Indian hospitality business. The MICE tourism market is expected to reach USD 9 billion by 2025, at a CAGR of 28.5%. Business hotels account for 35% of hotel rooms in major cities, with an average occupancy rate of 75%.

USD 244.86 Billion in 2024; projected USD 394.4 Billion by 2033; CAGR 5.42%.

In 2020 the annual revenue of hospitality events and exhibition market in India was over *** million U.S. dollars. It is expect to reach over *** million dollars in 2026. The market is forecasted to grow at compound annual growth rate (CAGR) of **** percent during the period of 2021 to 2026.

USD 362.65 Million in 2024; projected USD 927.43 Million by 2033; CAGR 11.06%.

As of March 2025, the Indian Hotels Company Limited (IHCL) was the leading hotel/restaurant company in India in terms of market capitalization with over one trillion Indian rupees. ITC Hotels ranked second, with EIH in third place during the same time period. Hotel chains as parts of conglomerates The ranking of the most valuable hotel companies in India reveals most were part of big conglomerates. The IHCL, known for its Taj hotels, is a subsidiary of the Tata Group. The iconic Taj Mahal Palace hotel in Mumbai was founded in 1903 by Jamsetji Tata, who had initiated the Tata Group three decades earlier. Not far away from the Taj hotel is the Trident Oberoi located in Mumbai. It is the flagship hotel of EIH, part of the Oberoi Group, a real estate conglomerate. Others present in the hotel industry included ITC Limited, formerly known as the Indian Tobacco Company, and the Mahindra Group. Sailing through turbulent waters The hotel industry in India grew at a stable pace in recent years. After a good start into 2020, the industry was hit hard by the coronavirus (COVID-19) pandemic as well as by the nationwide lockdown from March to June 2020, which included travel restrictions. Occupancy rates dropped significantly as a result, although the situation improved later that year, thanks in part to the annual festive season.

The size of the India Hospitality Market was valued at USD 231.28 million in 2023 and is projected to reach USD 325.43 million by 2032, with an expected CAGR of 5.0% during the forecast period. Recent developments include: March 2023: ITC's Hotel Group declared that its inaugural Mementos property, ITC Hotels in Ekaaya, Udaipur, would be inaugurated under the brand name Mementos., January 2023: Marriott declared The Westin Resort and Spa, Himalayas, the inaugural property of Westin Hotels and Resorts, to open in the Indian state of Uttarakhand.. Notable trends are: Favorable experiential travel is driving the market growth..

The number of hotel rooms in India stood at over 180 thousand in financial year 2024. This was expected to increase to nearly 200 thousand by financial year 2027. Bengaluru, New Delhi, and Mumbai made up the leading cities in this category. The growth of room supply was estimated to increase across the country, specifically in tier two and three cities, along a range of socio-economic segments. Sector insightTourism was one of the largest service sectors in the country. The ‘Incredible India’ campaign continues the development and promotion of the country’s attractions. Despite the dip in tourists as a result of the COVID-19 pandemic, the industry was expected to recover and continue on a growth path from 2022. This was also the year when travel restrictions eased around the world. Additionally, India opened its borders to international scheduled commercial flights in March 2022. Shift in traditional tourism With the onset of the coronavirus pandemic, staycations became popular across the country. Furthermore, working from home slowly translated to working from anywhere; which gave homestays and hostels in India a boost. The government's "Dekho Apna Desh", a campaign launched in December 2019 aimed to encourage domestic tourism, which accounted for the largest share of the travel market before COVID-19.

The Hospitality Industry in India is projected to be valued at $30 billion in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of 9%, reaching approximately $70 billion by 2034.

Revenue team in the hospitality domain Domain: Hospitality
Function: Revenue

AtliQ Grands owns multiple five-star hotels across India. They have been in the hospitality industry for the past 20 years. Due to strategic moves from other competitors and ineffective decision-making in management, AtliQ Grands are losing its market share and revenue in the luxury/business hotels category. As a strategic move, the managing director of AtliQ Grands wanted to incorporate “Business and Data Intelligence” to regain their market share and revenue. However, they do not have an in-house data analytics team to provide them with these insights.

Their revenue management team had decided to hire a 3rd party service provider to provide them with insights from their historical data.

Here is the reference of Data Visualization :

https://github.com/SanthoshSivakumar/Hospatility-Domain

As per Cognitive Market Research's latest published report, the Global Hotel market size was $XX Billion in 2024 and it is forecasted to reach $1,126.04 Billion by 2030. Hotel Industry's Compound Annual Growth Rate was 5.29% from 2023 to 2030.

North America held largest share of XX% in the year 2024 
Europe held share of XX% in the year 2024 
Asia-Pacific held significant share of XX% in the year 2024 
South America held significant share of XX% in the year 2024
Middle East and Africa held significant share of XX% in the year 2024 

Market Dynamics: Key Drivers

The growing hospitality industry has resulted in a rising number of restaurants and driving the market for Hotels

The growing hospitality industry, particularly the rising number of restaurants, is a significant driver for the hotel market, creating a symbiotic relationship where the success of one often fuels the growth of the other. Hotels with diverse and high-quality in-house dining options offer immense convenience to guests. Travelers, whether on business or leisure, appreciate not having to leave the hotel premises to find a good meal. A wide range of dining choices caters to different tastes and dietary needs, making the hotel more attractive.

Additionally, beyond overnight guests, excellent restaurants attract residents, drawing foot traffic to the hotel. This creates a vibrant atmosphere and can position the hotel as a culinary destination, even for those not staying there. This "staycation" trend or local patronage contributes to the hotel's overall revenue and brand visibility. The concept of a "staycation" involves locals opting for a short, leisure break in their own city or a nearby area, often seeking a blend of relaxation and indulgence. Hotels with strong F&B offerings are perfectly positioned to capture this market. Locals might book an overnight stay simply to enjoy the hotel's spa, pool, and, crucially, its high-quality restaurants and bars without the hassle of long-distance travel. This trend surged during the pandemic and has since solidified as a preferred leisure activity.

https://www.digigoyatra.com/blog/why-staycations-are-becoming-the-new-travel-trend-in-india

Market Restraint

The intensifying competition in the industry hinders the growth of the Hotel Market

The market is highly competitive, not only among traditional hotel chains, independent, boutique, but also increasingly with the rise of short-term rental platforms, like Airbnb. These alternatives offer diverse experiences and price points, putting pressure on traditional hotels. This has led to higher consumer expectations than ever for personalized experiences, seamless technology, exceptional service, and value for money, forcing businesses to constantly innovate and invest.

Moreover, to cater to the needs of a wide range of customers, large hotel chains constantly launch new sub-brands for instance, Marriott has launched numerous brands like Moxy, Element, and Autograph Collection to target increasingly niche traveler segments. This means more options for consumers within the same loyalty program, but also more direct competition for individual hotel properties.

In conclusion, intensifying competition, fueled by the rise of alternative accommodations, ever-increasing guest expectations, and pervasive price transparency, is a formidable restraint on the hospitality market. It forces hotels to constantly evolve, invest, and differentiate themselves not just on price, but crucially, on the quality of the experience they deliver. Introduction to the Hotel Market

Hotels have existed since very ancient times to serve merchants and other travelers. A hotel is a managed building or establishment that provides guests with a place to stay overnight, on a short-term basis, in exchange for money. The precise features and services provided to guests can vary quite drastically from one hotel to another.

The growth of the global hotel industry is primarily attributed to a strong resurgence in both leisure and business travel post-pandemic, fueled by rising global disposable incomes and a burgeoning middle class, particularly in emerging economies. This increased affluence and a desire for experiences lead to higher demand for diverse accommodation types, from luxury hotels to boutique stays and short-term rentals.

https://www.revfine.com/hotel-industry/

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The Hospitality Real Estate Market Report is Segmented by Property Type (Hotels, Resorts & Spas, Others), by Type (Chain Hotels, Independent Hotels), by Asset Class (Affordable/Budget, Midscale, Luxury), and by Geography (North America, South America, Europe, Middle East and Africa, Asia-Pacific). The Market Forecasts are Provided in Terms of Value (USD).

The revenue in the 'Hotels' segment of the travel & tourism market in India was modeled to be ************ U.S. dollars in 2024. Between 2017 and 2024, the revenue rose by ************ U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************ U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Hotels.

USD 193.89 Million in 2024; projected USD 337.8 Million by 2033; CAGR 6.39%.

Snapshot img

Hospitality Real Estate Market Size 2025-2029

The hospitality real estate market size is forecast to increase by USD 148.3 billion, at a CAGR of 15.1% between 2024 and 2029.

The market is experiencing significant shifts, driven by the increasing prevalence of quick-service restaurants and the adoption of technology in the industry. The proliferation of quick-service restaurants signifies a growing demand for flexible and cost-effective real estate solutions, as these businesses often require smaller footprints and lower overhead costs compared to traditional full-service restaurants. Meanwhile, technological advancements are revolutionizing the real estate sector, enabling more efficient property management, improved customer experiences, and enhanced data analysis. However, the market faces challenges, including uncertain macroeconomic conditions that can impact investment decisions and the overall economic health of the hospitality industry.
These challenges necessitate strategic planning and adaptability from industry players, as they navigate the evolving market landscape. Companies seeking to capitalize on opportunities and mitigate risks must stay informed of these trends and be prepared to respond effectively to the dynamic market conditions.

What will be the Size of the Hospitality Real Estate Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with dynamic market dynamics shaping various sectors. Guest service technologies and hotel management systems are increasingly integrated to enhance customer satisfaction and streamline operations. Regulations and property valuation play crucial roles in hotel financing, while smart room technology , hospitatlity robots and high-speed internet are essential for attracting guests. Interior design and sustainable building practices are key considerations for construction management, as digital marketing and social media engagement drive demand. Hotel ratings and branding strategies are shaped by reputation management and yield management strategies. Energy efficiency and concierge services are essential hotel amenities, with public relations and sales and reservations systems optimized for seamless guest experiences.

Guest feedback and staff training are integral to risk management and hotel operations, while occupancy rate and due diligence are crucial for effective revenue management. Hotel construction and site selection are influenced by zoning laws and building codes, with meeting rooms, banquet facilities, fitness centers, and spa services adding value to properties. Lease agreements and building permits are essential for property management, while wi-fi networks and meeting room technology support productivity and convenience. Security systems and accessibility standards ensure guest safety and compliance, with revenue management software and loyalty programs driving repeat business. Digital Signage and supply chain management optimize operational efficiency, while inventory management and employee scheduling systems support effective hotel operations.

How is this Hospitality Real Estate Industry segmented?

The hospitality real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Full service restaurants
  Quick service establishments
  Catering services


Type

  Hotels and accommodation
  Spas and resorts
  Other services


Sector

  Owned and operated
  Franchised properties
  Real estate investment trusts
  Management contracts


End-User

  Business Travelers
  Leisure Travelers
  Event Organizers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The full service restaurants segment is estimated to witness significant growth during the forecast period.

The hospitality industry continues to evolve, with guest service technologies and hotel management systems playing a pivotal role in enhancing customer satisfaction. Hotel regulations ensure safety and compliance, while property valuation and hotel financing facilitate growth. Smart room technology, high-speed internet, and digital marketing are essential amenities for modern travelers. Sustainable building practices and interior design are key trends, with a focus on energy efficiency and accessibility standards. Maintenance and repair, supply chain management, and wi-fi networks ensure smooth hotel operations. Lease agreements, hotel ratings, and revenue management

Category Management for Hospitality Market Outlook

According to our latest research, the Global Category Management for Hospitality market size was valued at $2.4 billion in 2024 and is projected to reach $6.9 billion by 2033, expanding at a robust CAGR of 12.8% during the forecast period of 2025 to 2033. One of the major factors propelling the growth of the Category Management for Hospitality market globally is the increasing adoption of data-driven procurement and supply chain optimization solutions across the hospitality sector. As hotels, restaurants, resorts, and cruise lines face mounting pressure to control costs, enhance guest experiences, and comply with evolving regulations, the need for sophisticated category management tools and services has never been greater. This trend is further accelerated by digital transformation initiatives and the integration of advanced analytics, artificial intelligence, and cloud-based platforms, which collectively enable hospitality businesses to streamline purchasing processes, improve supplier collaboration, and drive operational efficiencies at scale.

Regional Outlook

North America holds the largest share in the global Category Management for Hospitality market, accounting for approximately 38% of the total market value in 2024. This dominance is attributed to the region’s mature hospitality industry, high penetration of technology-driven procurement solutions, and a strong focus on operational efficiency and compliance. The United States, in particular, leads the adoption curve, with major hotel chains and restaurant groups investing heavily in category management software and services. Regulatory frameworks that emphasize transparency and cost control, coupled with a sophisticated supplier ecosystem, have further cemented North America’s leadership position. Additionally, the presence of key solution providers and a robust IT infrastructure have enabled rapid digital transformation, making North America a benchmark region for best practices in hospitality category management.

Asia Pacific is emerging as the fastest-growing region, projected to register a remarkable CAGR of 15.6% from 2025 to 2033. The region’s growth is underpinned by the rapid expansion of the hospitality sector, especially in China, India, Southeast Asia, and Australia. Increasing foreign direct investment, rising disposable incomes, and a burgeoning tourism industry are driving demand for hotels, resorts, and restaurants, which in turn is boosting the need for advanced category management solutions. Governments across Asia Pacific are also investing in digital infrastructure and promoting policies that support the modernization of the hospitality supply chain. These factors, combined with growing awareness of the benefits of data-driven procurement and the entry of global technology vendors, are accelerating market growth in the region.

In contrast, emerging economies in Latin America, the Middle East, and Africa are experiencing a more gradual adoption of category management solutions due to a mix of economic, regulatory, and infrastructural challenges. While there is significant potential for market expansion—driven by urbanization, increasing tourism, and investments in hospitality infrastructure—these regions face hurdles such as limited access to advanced technology, fragmented supplier markets, and varying regulatory standards. However, localized demand for tailored solutions and policy reforms aimed at improving procurement transparency are gradually fostering adoption. Multinational hotel chains and restaurant groups entering these markets are also playing a pivotal role in introducing best practices and catalyzing the uptake of modern category management systems.

Report Scope