Due to increase in domestic tourism, the size of India’s hotel industry will increase to about $31 billion by 2029. Real estate sector consultant CBRE has made this estimate. The size of the hotel industry was about $25 billion in 2024. In its latest report, CBRE said that India’s listed hotel companies can add more than 70,000 new rooms by 2030. However, the number of rooms currently in operation has not been mentioned. According to the report, the size of the industry is expected to increase to about $31 billion by 2029, which was about $24.6 billion in 2024. Domestic tourism will play a major role in this growth, with the number of trips increasing by 40 percent year-on-year to reach 4.1 billion in 2025.
Why is the sector growing?
Anshuman Magazine, Chairman and Chief Executive Officer (CEO) of CBRE’s India, South-East Asia, West Asia and Africa region, said that this progress in the hospitality sector reflects the economic strength of India, which is being driven by rising incomes and better connectivity. He said that as the industry is increasingly moving towards experience-based travel and attracting organized demand at religious and cultural destinations, there is potential for long-term and strong expansion in the country’s hospitality sector.
How much did the occupancy level reach?
CBRE said the hospitality sector continued to see strong growth in 2025 despite challenges such as global tensions and operational disruptions in the aviation sector. Last year, the total occupancy level reached about 64 percent. Revenue per available room (RevPAR) increased 11 percent year-over-year, while average daily rates (ADR) increased 8.7 percent. On the future outlook, the consultant said investment activity in the hospitality sector is likely to remain active till 2026, supported by sustained travel demand and investors’ continued interest in scalable hospitality platforms.
