Luxury rush: Hotels may add 100,000 keys in 5 yrs

The country's hospitality industry is expected to record one of its fastest growth rates in investment and expansion between 2024 and 2026, sector executives told Business Standard.

- ROSHNI SHEKHAR

The country's hospitality industry is expected to record one of its fastest growth rates in investment and expansion between 2024 and 2026, sector executives told Business Standard.

The industry is expected to add over 100,000 rooms in five years, said Manav Thadani, chairman, Hotelivate, at the Hotel Investment Conference—South Asia (Hicsa) 2025. This is an increase of 20-30 per cent over 2024. He added earlier 7,000-8,000 rooms used to be added each year, and now the pace had increased to 12,000-15,000 for the branded hotel supply.

Executives stated this growth was driven by the fast-growing middle-income segment, a surge in domestic tourism, and a demand-supply gap in the Indian market.

KB Kachru, chairman, South Asia, Radisson Hotel group, and president, Hotel Association of India, said this fast pace was due to low inventories in the market (less than 200,000 rooms at present). He added last year investment in hospitality increased, anticipating the trend to continue till next year.

There is a growth opportunity for upscale and upper-upscale segments in India, he said.