India Hotel Pipeline to Add 70,000 Rooms in 5 Years: CBRE
India hotel pipeline is set to add over 70,000 rooms in five years, driven by rising domestic travel, improved occupancy, and strong investor interest.
nishathapa 
New Delhi, 2026: India’s hospitality sector is entering a sustained growth phase, with domestic hotel chains expected to add more than 70,000 rooms over the next five years, according to a report by CBRE. The expansion reflects strengthening demand fundamentals, improved operating performance, and renewed investor confidence across the market.
The report, based on data from early 2026, indicates that the industry is transitioning from a post-pandemic recovery cycle into a phase of structural maturity. Growth is being driven primarily by domestic tourism, supported by rising incomes and increased travel demand across leisure, business, and cultural segments.
Pipeline Expansion and Market Growth
The addition of over 70,000 rooms is expected to significantly expand India’s branded hotel supply, particularly as operators scale across both established and emerging markets. CBRE estimates that the total market size of India’s hotel sector will grow from USD 24.6 billion in 2024 to USD 31 billion by 2029.
This expansion highlights the industry’s long-term growth trajectory, with hotel companies accelerating development pipelines to meet rising demand. The growth is not limited to metro cities but extends to tier II and tier III destinations, reflecting diversification in travel patterns.
Domestic tourism remains a key driver, with increasing mobility and higher disposable incomes contributing to sustained demand across segments including leisure travel, religious tourism, and short-haul trips.
Operational Performance Improves Across Market
During 2025, the Indian hotel market recorded improved operating metrics, with average occupancy levels reaching approximately 64 percent. This increase in occupancy contributed to an 11 percent rise in revenue per available room (RevPAR), a key indicator of hotel performance.
Average room rates also strengthened during the period, increasing by around 8.7 percent year-on-year. The combination of higher occupancy and stronger pricing reflects improved demand conditions and greater pricing power among hotel operators.
These performance gains indicate a shift in the market, where hotels are increasingly able to grow revenue through both volume and rate improvements rather than relying solely on occupancy recovery.
Investment Activity Gains Momentum
Investor confidence in India’s hospitality sector has strengthened alongside improving performance metrics. In 2025, hotel transaction volumes reached approximately USD 456 million, more than double the level recorded in the previous year.
This increase in deal activity reflects growing interest from institutional investors, who are responding to the sector’s improved fundamentals and long-term growth potential. The rise in investment also supports ongoing development pipelines, enabling expansion across multiple markets.
The report suggests that capital flows into the sector are aligned with the broader perception of hospitality as a stable and scalable asset class in India’s evolving real estate landscape.
Domestic and International Brands Expand Footprint
Indian hotel operators are actively expanding their portfolios in response to rising demand. The Indian Hotels Company is progressing with an accelerated expansion strategy across its brands, including Taj, Vivanta, and Ginger. Recent openings include the 135-room Vivanta Vrindavan and Gateway Dehradun, while projects such as the 350-room Taj Indore and Taj Sky View Hotel and Residences in Chennai are currently under development.
ITC Hotels is also expanding following the demerger of its hospitality business. Its pipeline includes a Welcomhotel in Gwalior and a Storii-branded property in Jawai, reflecting a mix of urban and experiential offerings.
International hotel operators are similarly strengthening their presence in India. Hyatt has outlined plans to double its portfolio in the country by 2030, supported by partnerships such as its collaboration with Brigade Ventures. Its upcoming projects include Hyatt Regency properties in Kasauli, Guwahati, Ghaziabad, and Surat.
IHG Hotels & Resorts is expanding its presence with new Holiday Inn properties planned in Bodhgaya, Chennai, Prayagraj, and Udaipur. The group is also developing luxury InterContinental hotels in Kasauli, New Delhi, and Hyderabad, along with the InterContinental Kodaikanal Resort.
Hilton is pursuing growth through partnerships, with its Hampton by Hilton brand expanding with Royal Orchid Hotels and Olive Hospitality supporting the rollout of the Spark by Hilton brand.
Shift Toward Experience-Led and Diverse Demand
The report highlights a broader shift in India’s hospitality sector toward experience-driven travel. Demand is increasingly diversified, spanning leisure, spiritual tourism, cultural destinations, and business travel.
This diversification is reducing reliance on single demand segments and supporting more consistent occupancy patterns throughout the year. Hotels are also aligning their development strategies to capture demand from emerging segments such as experiential travel and destination-based stays.
According to CBRE, the sector’s expansion is being driven not only by volume growth but also by evolving consumer preferences, which are reshaping how hotels are designed, positioned, and operated.
With strong domestic demand, improving financial performance, and increasing investor participation, India’s hospitality industry is entering a phase of sustained expansion. The addition of new room supply over the next five years is expected to support this growth while reshaping the country’s hotel landscape across both urban and regional markets.
