What Multi-Million Dollar Hotel Deals Say About India’s Hospitality Landscape

Nearly 25 hotels in India changed hands in multi-million dollar deals in 2024, according to real estate firm JLL. These transactions primarily involved operational properties located in both business and leisure destinations, with a focus on Tier-2 and Tier-3 cities.

JLL reports that this high volume of deals signals strong recovery and expanding footprint for the hospitality sector across the Indian subcontinent.

“There is capital available for hotel investments. The yields are very attractive compared to previous years,” said Jaideep Dang, managing director of the Hotels and Hospitality Group at JLL. 

“Most of the transactions occurred in the 3-star and 4-star segments,” Dang told Skift. Only a small number of deals involved 5-star and luxury properties. “Most of the luxury and 5-star hotels are tightly held by Indian listed companies. These companies aren’t selling — they’re buying.”

According to JLL, nearly half of all hotel transactions in 2024 occurred in Tier-2 and Tier-3 cities. “This trend has broadened the industry’s reach, bringing quality accommodations to previously underserved markets such as Amritsar, Mathura, Bikaner, and several others,” the firm said in a statement.

India is witnessing a surge in interest from hospitality chains. Last week, Hilton said that it plans to increase its presence in India by 10 times over the next decade. Over the next couple of years, the company plans to launch five new Hilton brands in the country.

Accor is also planning to scale up to 300 properties across the country by 2030. Looking at 25-30 openings every year, the company is counting on expansion across multiple brands, ranging from lifestyle brands such as Ennismore to affordable Ibis and Mercure.

International brands such as IHG, Ascott, Marriott, and Radisson are also looking at expanding their India portfolios. While IHG has introduced its newest midscale brand, Garner, to India, Singapore-based The Ascott Limited is focusing on Tier-2 and 3 cities to increase its portfolio from 5,500 to 12,000 units by 2028.

Last month, Thai hospitality company Dusit Hotels & Resorts officially returned to India after it exited the country in 2016. It has 10 upcoming properties with an inventory of 800 keys.

A Diverse Investor Base

JLL also noted that high-net-worth individuals, family offices, and private hotel owners accounted for 51% of the transaction value in 2024.

“Since the pandemic, we’ve seen a pattern emerge,” said Dang. “A lot of the activity is driven by Indian listed companies with long-term involvement in the hospitality business. There’s also significant interest from individuals with private wealth — people who’ve made money in other industries and are now investing in hotels for annuity income and capital growth.”

He added that the hotel industry’s performance remains robust. “Hotels are full, airlines are full, and load capacities are increasing. That’s why more new investors are entering the market to build hotels.”

Strong Momentum in Hotel Signings

In 2024, more than 42,000 rooms were signed across branded hotels in India, with approximately 75% of those signings occurring in Tier-2 and Tier-3 markets, according to JLL.

Dang pointed out a development trend in smaller cities: high local demand for food, beverage, and banqueting is driving the creation of hotels with fewer rooms but more event space. “These cities aren’t getting 500-key hotels,” he explained. “You might see an 80-room hotel with 20,000 square feet of event space — similar to what you’d find in a major city. Only here, there would be far fewer rooms.”

In the post-Covid era, hotel companies are rebalancing their portfolios. With the cost of land in major cities skyrocketing, building large luxury hotels in these locations is becoming increasingly unviable. “So companies are diversifying — looking at mixed-use developments that combine hotels with malls or office spaces to offset costs and reduce financial risk,” Dang said.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.