Tier-II And III Cities Drive Nearly Half Of India’s Hotel Deals In 2024: JLL

India’s hospitality sector maintained its growth momentum in 2024, with a notable shift toward tier-II and III cities. These emerging markets accounted for nearly half of all hotel transactions, according to a JLL report released on Monday.

The sector witnessed around 25 deals last year. Most involved operational properties across business and leisure destinations.

Cities like Amritsar, Mathura, and Bikaner saw increased investor interest, bringing quality accommodation to previously underserved areas.

Investor diversity marked 2024. High-net-worth individuals, family offices, and private hotel owners made up 51% of the transaction volume.

Listed hotel companies followed with 34%, while owner-operators and real estate developers contributed 8% and 7%, respectively.

India’s hospitality sector also saw a surge in greenfield projects. Developers signed 28,281 keys in 2024, more than doubling the 13,600 keys signed in 2023.

This reflects long-term confidence in the market.

Tier I cities like Mumbai, Bengaluru, Hyderabad, Pune, and Chennai remained key markets.

Hotels with over 250 keys were signed in these hubs, driven by strong domestic demand and commercial activity.

In early 2025, JLL facilitated two hotel deals in Chennai and Goa. Jaideep Dang, Managing Director, Hotels and Hospitality Group, JLL India, said investor enthusiasm for both operational assets and land remains high.

He cited favorable economic conditions, growing commercial hubs, and the government’s Budget push for tourism as key drivers.

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