Hotel investments shift to smaller cities

Of 47,500 hotel rooms signed across more than 486 properties in 2024, 74% were in tier-II, III and IV cities

- Varuni Khosla

For years, India's hospitality growth was anchored in the bustling metros—Delhi, Mumbai and Bengaluru. But a new wave is brewing in smaller cities, where economic shifts and changing travel habits draw record investments.

According to a new report, HVS Anarock HOPE 2025 Special, shared exclusively with Mint, over 47,500 hotel rooms were signed across more than 486 properties in 2024—marking a record year for expansion. Notably, 74% of these signings were in tier-II, III and IV cities, up from 65% in 2019.