Smaller cities drove greenfield hotel projects in H1CY25

India’s hospitality industry is seeing a fresh cycle of structural growth, driven by a surge in greenfield hotel developments across Tier-II, -III, and -IV cities. Developers are increasingly focusing on expanding the branded hotel footprint beyond India’s top metros.

- ROSHNI SHEKHAR

“The share of greenfield signings has risen steadily from 39 per cent of total keys signed (12,433 rooms) in 2020 to 59 per cent (26,897 keys) in the first half of 2025, while brownfield projects declined from 40 per cent to 29 per cent during the same period,” said Mandeep S Lamba, president and chief executive officer (South Asia), HVS Anarock.

With the industry expected to add over 100,000 rooms in the next five years amid one of its fastest investment cycles, Lamba said there was a growing preference of ground-up projects over conversions or rebranding. Given current trends, greenfield developments may dominate new supply in the coming years, he added.