 "Hotel Investments Surge in India: A 3 Million Transformation Ahead!")
In the first half of 2024, hotel investments in India reached $93 million, showing strong interest from various investors. Listed companies led the transactions, accounting for 44 percent of the total. The JLL report predicts total investments for the year will hit $413 million, a 22 percent rise from 2023. The upscale hotel segment dominated transaction volumes at 44 percent, with operational hotels making up 72 percent of deals. Tier-I cities like Mumbai and Hyderabad saw significant activity due to growing demand. In addition, 6,071 new hotel keys were added, primarily in the midscale segment. The hospitality sector is expected to continue thriving as favorable trends persist throughout 2024.
In the first half of 2024, hotel investments in India reached a significant $93 million, highlighting the growing interest in the hospitality sector. According to the JLL Hotel Investment Trends report, listed companies led the way, contributing 44 percent of the total transaction volumes. Owner-operators came in next, securing 30 percent of the transactions, while high-net-worth individuals, family offices, and private hotel owners accounted for 26 percent.
The report predicts that total hotel investments for 2024 could hit $413 million, representing a 22 percent increase compared to 2023. The upscale segment alone made up 44 percent of the overall transaction volume, followed by mid-scale hotels at 31 percent and luxury hotels at 23 percent.
In the first half of the year, six significant hotel deals were closed, including both operational hotels in major cities and land leases for new developments near airports. Notably, operational hotels represented about 72 percent of all transactions, and under-construction properties accounted for 23 percent.
Jaideep Dang, managing director of JLL’s hotels and hospitality group in India, emphasized the increasing attractiveness of the investment landscape, driven by favorable macroeconomic conditions and enhanced air connectivity. So far in the second half of 2024, JLL has already facilitated two major transactions, totaling $70 million.
Additionally, a remarkable total of 19,442 hotel rooms were signed in the first half of 2024, with a majority located in Tier-II and III cities. Most agreements were management contracts, making up 89 percent, followed by franchises and lease agreements. The midscale segment dominated new openings, with a major share occurring in Tier-I markets like Mumbai, Hyderabad, and Chennai, thanks to strong domestic demand and rising commercial activity.
Overall, experts anticipate that the hospitality sector in India will continue its upward trajectory, supported by the favorable trends identified in the first half of the year.
Hospitality, Hotel Investments, India, JLL Report, Real Estate, Hotel Industry, 2024 Trends.
What is the recent investment amount in India’s hospitality sector?
India’s hospitality sector attracted $93 million in investments in the first half of 2024.
Why is this investment important for India?
This investment is important because it helps boost the economy, creates jobs, and improves tourism facilities.
Which areas of the hospitality sector are seeing the most investment?
Investments are focusing on hotels, resorts, and travel services within the hospitality sector.
How does this investment impact tourism in India?
This investment can lead to better services and more options for travelers, making India a more attractive destination for tourists.
What are the long-term effects of this investment in hospitality?
In the long run, this investment can enhance infrastructure, increase tourist footfall, and support the growth of local businesses.
