India’s hospitality sector experienced a significant boost in 2025, with hotel investments totaling around $567 million in 28 transactions, marking a 67% increase from the previous year, as per a report by JLL. The report noted that institutional capital and private equity contributed to 35% of the transaction volume. High net-worth individuals, family offices, and listed hotel companies also played substantial roles in the investments, showcasing a diverse capital inflow.
Tier II and III cities in India attracted approximately 40% of the transaction volume, with 71% of branded hotel signings concentrated in emerging cities, the report highlighted. Notable investments were made in premium assets like luxury resorts in Rishikesh, upper-upscale properties in Goa, and upscale to midscale hotels in cities such as Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.
The luxury and upscale segments dominated the investment activity, accounting for 42% and 41% of transactions, respectively. Moreover, 69% of deals involved operational income-producing hotels. The report also emphasized the significant opportunities presented by government initiatives, such as land monetization at airports and government-led auctions in strategic micro-markets like Yashobhoomi, Neopolis, Fintech City, and Jewar Airport.
Gaurav Sharma, Managing Director, Hotels, India & Senior Director, Hotels Capital Markets, Asia, mentioned that India’s hotel investment market reflects growing investor confidence and market depth. He highlighted the trend of expanding investments beyond gateway cities and the increasing demand for high-quality hotels. The first quarter of 2026 witnessed a surge in transaction volumes, reaching about $185 million, a 58% increase from the previous year, indicating a positive momentum in the sector.
