Indian Retail Leasing Surges 69% to Record 5.7 Million Sq. Ft in H1 2025; Mall Supply Up 165%

New Delhi, October 2025:
India’s hospitality sector is witnessing an unprecedented growth wave, backed by record-high investments, aggressive brand expansions, and a surge in domestic and international tourism. According to industry reports, over 42,000 new hotel keys are expected to be added to India’s inventory in the next five years, reflecting robust investor confidence and a flourishing travel ecosystem.

Investment Momentum and Expanding Portfolio

The country’s hotel development pipeline has more than doubled since 2020, with large-scale projects announced across Tier 1 and Tier 2 cities. Global operators such as IHG, Marriott, Hilton, Accor, and Hyatt, alongside Indian brands like Taj, Lemon Tree, Oberoi, and ITC Hotels, are actively expanding portfolios across business, leisure, and boutique segments.
Industry experts attribute this boom to rising disposable incomes, surging domestic travel, and favorable government policies, including infrastructure upgrades and tourism incentives.

Domestic Tourism and New Market Trends

Post-pandemic travel trends have significantly reshaped India’s hospitality geography. Spiritual tourism hubs (Varanasi, Ayodhya, Puri), leisure destinations (Goa, Jaipur, Coorg), and business centers (Gurugram, Bengaluru, Hyderabad) are all witnessing record hotel demand. Developers are also focusing on eco-resorts, serviced apartments, and mid-scale hotels to cater to evolving traveler preferences.

Strong Investor Confidence

Foreign institutional investors and domestic real estate funds have collectively committed billions toward hospitality and mixed-use developments, viewing India as a high-growth, under-supplied market. Analysts estimate over USD 6–7 billion in new investments over the next few years, with a growing emphasis on green hotels and digitally enhanced guest experiences.

Outlook: A Decade of Expansion

With over 42,000 hotel keys in the development pipeline, the Indian hospitality industry is poised to reach historic highs by 2030, creating thousands of jobs and unlocking new opportunities in allied sectors.
As India strengthens its position as a global travel destination, its hospitality boom reflects the country’s broader economic momentum—an era defined by investment confidence, innovation, and sustainable tourism growth.