India’s Hospitality Sector Attracts $93 Million in Investments in H1 2024

India's hospitality industry saw a significant investment surge of $93 million in the first half of 2024, according to a report by JLL. The upscale segment dominated with 44% of the total transaction volume, followed by mid-scale (31%) and luxury (23%) segments. Listed hotel companies led the market with 44% of the total transactions, while owner-operators and private hotel owners contributed 30% and 26%, respectively.

A key highlight was the growth in Tier II and III cities, which accounted for 83% of the 19,442 keys signed during this period. This growth reflects a rising interest in developing hospitality infrastructure outside major metropolitan areas.

The report also noted that 72% of the transaction volume involved operational hotels, while 23% pertained to under-construction properties. Six hotel transactions were completed, including operational assets in Tier I cities and greenfield projects in airport districts.
Looking ahead, the sector is projected to close 2024 with $413 million in investment, marking a 22% increase over 2023. JLL has already facilitated two major transactions in Mumbai and Goa, totaling $70 million in the second half of 2024.

Jaideep Dang, Managing Director of JLL India’s Hotels and Hospitality Group, emphasized that H1 2024 has set the stage for a robust year, driven by strong domestic demand and expanding commercial activity.