MUMBAI: India’s hospitality sector experienced outstanding growth in 2025, with hotel investments totaling $567 million over 28 transactions, a remarkable 67% rise over the $340 million recorded in 2024.
According to a survey conducted by multinational property consultant Jones Lang LaSalle, this spike demonstrates strong investor confidence in India’s tourism infrastructure and the sector’s basic strength across numerous market segments. The investment environment demonstrated a savvy diversification of funding sources.
Institutional capital and private equity firms accounted for 35% of overall transaction volume, followed by high net worth individuals, family offices, and private hotel owners (27%), listed hotel companies (25%), real estate developers (8%), and owner-operators (5%). This balanced investor makeup reflects the sector’s appeal across a wide range of investment philosophies and risk profiles.
Tier II and III cities emerged as key growth engines, accounting for almost 40% of total transaction volume, maintaining pace from the previous year. These markets contained premium assets such as luxury resorts in Rishikesh, upper-upscale properties in Goa, and upscale to midscale hotels in rising cities like Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.
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