India’s Hospitality Sector Set To Attract $1 Billion Investment By 2028: JLL

India’s hospitality industry is on track to receive USD 1 billion in investments by 2028, a sharp rise from USD 340 million in hotel transactions recorded in 2024, according to a report released on Friday by global real estate firm JLL.

The report highlighted that the Revenue Per Available Room (RevPAR) rose 16.3 per cent during January–March 2025 compared to the same period last year. This surge reflects the sector’s strong post-pandemic recovery and consistent growth.

Strong Performance Across Indian Cities

JLL noted that the industry’s momentum continued into the previous quarter as well, with an 8 per cent RevPAR growth during October–December 2024.

Investor sentiment remained optimistic, with 79 new hotel signings totalling 9,478 keys during this three-month period.

Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL, stated, “India’s hospitality sector continues to demonstrate exceptional resilience and growth potential. Q1 2025 showed remarkable RevPAR growth across key markets, especially Bengaluru, which recorded an impressive 38.3 per cent increase.”

He added that the 79 hotel signings indicate strong investor faith in the sector’s fundamentals. JLL’s projection of USD 1 billion in investments by 2028 reflects a transformation in the market, balancing immediate gains with long-term strategies.

Event-Driven Growth Boosts Major Markets

Bengaluru led with 38.3 per cent year-on-year RevPAR growth, driven by the Aero India 2025 event.

Delhi followed with 26.2 per cent and Mumbai with 21.3 per cent growth, both supported by high occupancy.

Chennai showed 18.7 per cent growth, attributed to corporate travel, the Annual Leather Fair, and the USICON event.

Hyderabad posted a 15.1 per cent rise despite a slight drop in occupancy, showing strong rate resilience.

The sector also saw the opening of 31 branded hotels (3,253 keys) during January–March 2025, indicating a vigorous development pipeline, JLL stated.

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