India's Hospitality Boom: 25 Deals and 42,000 New Hotel Keys in 2024

India's hospitality sector saw great growth in 2024, with 25 major deals and over 42,000 new hotel keys added. This rapid expansion is indicative of a healthy recovery and rising investor confidence in the industry.

Key Highlights:

Investment Trends: The year witnessed a varied set of investors, with high-net-worth individuals, family offices, and private hotel owners investing 51% of the transaction volume. 34% of the volume was contributed by listed hotel companies, followed by owner-operators and real estate developers.

Tier II and III Cities: These cities registered almost half of all hotel transactions, indicating a trend towards the growth of hospitality infrastructure outside large metropolitan areas. Amritsar, Mathura, and Bikaner are some of the new hotspots.

Branded Hotel Signings: 42,071 keys were signed in 2024, of which 77% were concentrated in Tier II and III cities. Management contracts were the dominant form of these deals, with 81% of the total keys.

Market Performance: Hyderabad and Bengaluru cities posted spectacular growth in Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR), reflecting the sector's resilience.

This growth demonstrates a positive trajectory for India's hospitality industry based on robust domestic demand and value-added investments in growing markets.

Source: Hospitality Biz India, The Week, The Telegraph India