The India Hospitality Industry market report segments the industry into By Type (Chain Hotels, Independent Hotels), By Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, Luxury Hotels). Includes historical insights and five-year forecasts.

Discover India’s hospitality industry insights, market size, top players, future outlook, and trends shaping the market in 2028. Explore key growth drivers and opportunities.

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 32 billion U.S. dollars in financial year 2020. This was projected to grow to around 52 billion U.S. dollars by 2027. Around 80 percent of the revenue came from domestic market during the same time period.

The report covers India Luxury Hotels Market Brands and it is segmented by service type (Business Hotel, Airport Hotel, Suite Hotel, Resort & Spa, and others). The market size and forecasts are provided in terms of value (USD million) for all the above segments.

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.

Service Apartments: These fully equipped apartments provide extended-stay options for guests seeking convenience and home-like comforts. Budget and Economy Hotels: Designed for budget-conscious travelers, these hotels offer basic amenities at affordable prices. Mid and Upper Mid-scale Hotels: This segment caters to a broad spectrum of travelers, featuring comfortable accommodations, modern amenities, and personalized services. Luxury Hotels: These upscale establishments offer exceptional experiences, opulent amenities, and tailored services, targeting high-end travelers and discerning clientele. 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..

In 2020 the annual revenue of hospitality events and exhibition market in India was over 130 million U.S. dollars. It is expect to reach over 186 million dollars in 2026. The market is forecasted to grow at compound annual growth rate (CAGR) of 6.54 percent during the period of 2021 to 2026.

Recent developments include: September 2022: ITC Hotel plans to launch more than 20 properties in the next two years. This will help the hotel to grow its market share and to capture various demographic segments., 2021: Taj Group has decided to welcome guests with a zero-touch experience. The group has been moving towards a touchless interface to make customers feel safe at the hotels. This resulted in creating IHCL's Zero-Touch Service Transformation - a suite of digital solutions across its hotels under Taj, Vivanta, and others.. Key drivers for this market are: Internet Penetration is Driving the Market. Potential restraints include: Government Regulations are Restraining the Market. Notable trends are: Increasing Expenses by Domestic Travelers is fueling Luxurious Hotel Industry.

Leverage actionable intelligence on India Hotel Market, size at USD 32 Billion in 2023 featuring key players and challenges.

IHIS: Average Hotel Occupancy Rate: Raipur data was reported at 58.300 % in 2016. This records an increase from the previous number of 39.000 % for 2010. IHIS: Average Hotel Occupancy Rate: Raipur data is updated yearly, averaging 58.300 % from Mar 2007 (Median) to 2016, with 5 observations. The data reached an all-time high of 74.100 % in 2007 and a record low of 39.000 % in 2010. IHIS: Average Hotel Occupancy Rate: Raipur data remains active status in CEIC and is reported by The Federation of Hotel & Restaurant Associations of India. The data is categorized under India Premium Database’s Hotel Sector – Table IN.QHC003: Indian Hotel Industry Survey: Average Hotel Occupancy Rate: by Cities.

The Indian hotel industry, valued at $247.31 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 13.96% from 2025 to 2033. This expansion is driven by several factors. Rising disposable incomes, a burgeoning middle class with increased leisure travel and business tourism, and the government's focus on infrastructure development, particularly in tourism, are significant contributors. The increasing popularity of domestic tourism, fueled by a desire for unique experiences and exploring diverse Indian cultures, is also bolstering the market. Furthermore, the emergence of online travel agencies (OTAs) and the growth of budget-friendly hotel chains are making travel more accessible and affordable, further expanding the market's reach. The industry is segmented by type (chain and independent hotels) and service offerings (service apartments, budget/economy, mid-scale, and luxury hotels), catering to a wide range of traveler preferences and budgets. Competition is fierce, with major players like Oberoi Hotels & Resorts, ITC Hotels, and Taj Hotels vying for market share alongside rapidly expanding budget chains like OYO Rooms. Loyalty programs are also playing a crucial role in attracting and retaining customers. Regional variations exist, with North, South, East, and West India each exhibiting unique growth trajectories influenced by local economic conditions and tourism patterns. While the industry's prospects are bright, certain challenges persist. These include infrastructural limitations in certain regions, particularly concerning connectivity and accessibility to tourist hotspots. Fluctuations in foreign exchange rates can impact international tourism, and the seasonality of the tourism industry leads to inconsistent demand throughout the year. Maintaining service quality and addressing concerns about sustainability also pose ongoing challenges for the sector. The successful navigation of these challenges will be key to realizing the industry's full growth potential, ensuring sustained profitability, and cementing India's position as a major tourism destination. Strategic investments in infrastructure, technological advancements to improve operational efficiency, and a focus on creating unique and sustainable travel experiences will be crucial for future success. 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 India Luxury Hotel Market Size Was Worth USD 2,472.03 Million in 2023 and Is Expected To Reach USD 5,876.79 Million by 2032, CAGR of 10.10%.

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 Indian luxury hotel market, valued at approximately $2.72 billion in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 10.06% from 2025 to 2033. This expansion is driven by several factors. A burgeoning affluent Indian population with increased disposable income is fueling demand for high-end travel and accommodation. Furthermore, India's growing prominence as a global tourist destination, particularly for experiential luxury travel, is significantly contributing to market growth. The increasing preference for unique and personalized experiences, including wellness retreats, heritage stays, and bespoke services, is reshaping the luxury hotel landscape. Strategic investments by both domestic and international hotel chains in upscale properties, coupled with infrastructural developments in key tourist hubs, are further accelerating market expansion. Competition amongst established players like The Oberoi Hotels, ITC Hotels, and Taj Hotels, alongside the emergence of boutique luxury brands, is driving innovation and enhancing the overall guest experience. The market segmentation reveals strong demand across various property types, including business hotels catering to corporate travelers, resort and spa hotels attracting leisure tourists, and airport hotels catering to the convenience-seeking traveler. Regional variations exist, with North and South India potentially exhibiting higher growth due to existing infrastructure and tourism attractiveness. While the market presents substantial opportunities, challenges remain. Maintaining consistent service quality and addressing potential fluctuations in tourism due to global economic conditions are key considerations. Ensuring the sustainability of luxury operations while adhering to environmental and social responsibility standards is also becoming increasingly vital for long-term success. The rising cost of labor and operating expenses may pose a challenge to profitability, prompting the need for innovative cost management strategies. Competition from the burgeoning experiential tourism sector that extends beyond traditional hotels also necessitates adaptability and innovation. Future growth will depend on the ability of luxury hotel operators to anticipate and respond to evolving consumer preferences, while continuing to deliver superior service and value to maintain competitiveness in this dynamic market. Recent developments include: September 2022: ITC Hotel plans to launch more than 20 properties in the next two years. This will help the hotel to grow its market share and to capture various demographic segments., 2021: Taj Group has decided to welcome guests with a zero-touch experience. The group has been moving towards a touchless interface to make customers feel safe at the hotels. This resulted in creating IHCL's Zero-Touch Service Transformation - a suite of digital solutions across its hotels under Taj, Vivanta, and others.. Key drivers for this market are: Internet Penetration is Driving the Market. Potential restraints include: Government Regulations are Restraining the Market. Notable trends are: Increasing Expenses by Domestic Travelers is fueling Luxurious Hotel Industry.

India Hospitality comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

IHIS: Average Hotel Occupancy Rate: Five-Star data was reported at 67.300 % in 2017. This records an increase from the previous number of 66.000 % for 2016. IHIS: Average Hotel Occupancy Rate: Five-Star data is updated yearly, averaging 63.450 % from Mar 2000 (Median) to 2017, with 18 observations. The data reached an all-time high of 73.000 % in 2008 and a record low of 51.600 % in 2000. IHIS: Average Hotel Occupancy Rate: Five-Star data remains active status in CEIC and is reported by Federation of Hotel & Restaurant Associations of India. The data is categorized under India Premium Database’s Hotel Sector – Table IN.QHC002: Indian Hotel Industry Survey: Average Hotel Occupancy Rate.

The Report Covers Online Book Market Size in India and it is segmented By Platform type (Mobile application & Website) & By Mode of Booking Type (Third Party online portals & Direct/Captive portals).

Average Occupancy Hotel Rate: City: Mumbai data was reported at 73.400 % in 2017. This records an increase from the previous number of 71.200 % for 2016. Average Occupancy Hotel Rate: City: Mumbai data is updated yearly, averaging 71.200 % from Mar 1999 (Median) to 2017, with 19 observations. The data reached an all-time high of 80.100 % in 2008 and a record low of 59.500 % in 2000. Average Occupancy Hotel Rate: City: Mumbai data remains active status in CEIC and is reported by The Federation of Hotel & Restaurant Associations of India. The data is categorized under Global Database’s India – Table IN.QHC003: Indian Hotel Industry Survey: Average Hotel Occupancy Rate: by Cities.

The revenue in the 'Hotels' segment of the travel & tourism market in India was forecast to continuously increase between 2024 and 2029 by in total 4.5 billion U.S. dollars (+47.52 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 13.92 billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the ARPU in the 'Hotels' segment of the travel & tourism market in Ireland and the number of users in the 'Hotels' segment of the travel & tourism market in Singapore. The Statista Market Insights cover a broad range of additional markets.