According to TechSci Research report, “India Hotel Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the India Hotel Market was valued at USD 15.67 Billion in 2024 and is expected to reach USD 22.41 Billion by 2030 with a CAGR of 9.32% during the forecast period. The India Hotel market has experienced substantial growth in recent years, owing to the rise of domestic travel across the region. As disposable incomes increase and the middle class expands, more Indian consumers are opting to travel within the country, leading to a surge in demand for hotels across both popular tourist destinations and emerging regions. This growth is further fuelled by a shift in consumer behaviour, with travelers seeking unique, off-the-beaten-path experiences in smaller towns and rural areas, in addition to well-known spots like Goa, Rajasthan, and Kerala. The convenience of domestic travel, coupled with affordable pricing options, has made it easier for families, young professionals, and retirees to explore the vast cultural and geographical diversity India offers. Also, government initiatives such as the "Dekho Apna Desh" campaign have also encouraged people to explore local destinations. As a result, hotel operators are focusing more on regional markets, developing accommodations that cater to the needs of domestic travelers, whether for leisure, business, or wellness tourism. This rise in domestic tourism is expected to continue, further strengthening the growth trajectory of the Indian hotel market.

The India Hotel market is driven due to the increasing government initiatives to support the hotel industry across the region. Programs like the "Incredible India" campaign have significantly boosted tourism, attracting both domestic and international travelers by showcasing the country's rich cultural heritage, scenic beauty, and diverse attractions. Also, the government has introduced policies to ease visa processes, such as the e-visa scheme, which has made it more convenient for tourists from several countries to visit India. The government is also investing heavily in infrastructure development, including improving transportation networks, building new airports, and enhancing rail connectivity, all of which make travel more accessible and convenient. Also, initiatives like the "Dekho Apna Desh" campaign encourage domestic tourism, prompting Indians to explore their own country, thus increasing demand for hotel accommodations. The introduction of the "Swadesh Darshan Scheme" and "Prasad Scheme" has further promoted tourism development by providing financial assistance to states for developing infrastructure in key tourist spots. Also, the Goods and Services Tax (GST) reduction on hotel services has provided relief to hotel operators, encouraging investment in the sector. These initiatives, combined with favorable policies and infrastructure improvements, are expected to continue fostering the growth of the hotel industry in India.

India Hotel Market Overview

India’s hotel industry is flourishing, propelled by domestic travel growth, business expansion, and emerging preferences for experiential stays. Hotels—from boutique properties to international chains—are redefining hospitality through design, service innovation, and enhanced guest experiences.

Diversified Guest Profiles

The market caters to a wide range of travelers: leisure-seekers, business guests, long-stay visitors, wellness travelers, and experiential tourists. With remote work gaining traction, “bleisure” (business + leisure) stays and workcation packages are becoming standard offerings.

Rise of Boutique & Themed Stays

Beyond traditional accommodations, boutique hotels, heritage homestays, and eco-retreats are gaining popularity. Travelers increasingly seek "Instagram‑ready" design, cultural authenticity, wellness amenities, or countryside escapes—especially in non-metro and Tier-II/III locations.

Hybrid Room & Co‑Working Models

Hotels are adapting to digital-age lifestyles by integrating shared co‑working lounges, business center facilities, and fast Wi-Fi into mid-level and upscale properties. Flexible work spaces, meeting-capable guest rooms, and extended-stay packages are now common, responding to evolving business travel and work-from-hotel trends.

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The India Hotel Market is segmented into ownership, budget, services offered, target audience, booking mode and region.

Based on booking mode, online is the fastest-growing segment in the India Hotel market, driven by the increasing use of digital platforms for travel planning and reservations. The rise of online travel agencies (OTAs) like MakeMyTrip, Booking.com, and Airbnb has made it easier for consumers to compare prices, read reviews, and book accommodations from the comfort of their homes. The growing preference for contactless, convenient booking experiences has accelerated this trend, especially among tech-savvy millennials and Gen Z travelers. Also, the increasing penetration of smartphones and improved internet connectivity in both urban and rural areas have made online platforms more accessible to a wider audience. Hotels are responding by enhancing their online presence, offering exclusive deals, and providing seamless digital booking experiences through mobile apps and websites. This shift towards online bookings is expected to continue as more travelers opt for the convenience, transparency, and ease of making reservations via digital platforms, making it a key driver of the Indian hotel market’s growth.

Based on region, South region of India is the fastest growing in the Hotel market, driven by a rise in both domestic and international tourism. States like Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh are seeing a significant influx of tourists due to their rich cultural heritage, beautiful landscapes, and growing business opportunities. Popular destinations like Kochi, Bangalore, Chennai, and Hyderabad are attracting travelers for leisure, wellness, and business purposes, further boosting hotel demand. Also, the region's growing infrastructure, including better connectivity through airports, highways, and railways, is making travel more accessible. The South’s appeal as a hub for business tourism, along with its vibrant culture and increasing number of luxury and boutique hotels, contributes to its rapid growth in the hospitality sector. This trend is expected to continue as both leisure and business tourism flourish in the region.

Digital & Contactless Guest Journeys

Digital check-ins, mobile key access, app-based service requests, and AI-enabled chat assistance are increasingly standard. Guest experiences are becoming more seamless and self-service, supported by smart-room features and digital concierge services.

F&B-led Value Differentiation

Food and beverage outlets—rooftop bars, specialty restaurants, health-conscious cafés, and 24/7 grab-and-go corners—are critical differentiators. Hotels are crafting strong F&B brands within their properties to drive local footfall, long-stay guest value, and community engagement.

Sustainability & Responsible Operations

Eco-conscious travelers are favoring hotels with energy-efficient systems, water conservation practices, zero-waste initiatives, and locally sourced materials. Green certifications—such as those focusing on carbon footprint and biodiversity—are increasingly visible and valued.

Wellness & Experiential Packages

Beyond dining and decor, wellness offerings—like spa packages, meditation sessions, fitness classes, and nature trails—are becoming core appeal factors. Guests now look for holistic wellness and lifestyle integration, not just standard accommodation amenities.

Consolidation & Brand Expansion

Domestic hotel chains are strategically scaling into newer markets, while global brands are accelerating partnerships and franchising to tap into India’s growth potential. M&A, asset-light models, and tech-enabled operations are shaping a more capital-efficient, scalable blueprint.

Personalized Loyalty & Pricing Models

Hotels are refining loyalty programs, bundling services, and offering flexible stay and cancellation options. Dynamic pricing based on real-time demand and guest profiling—often driven by AI—helps maximize revenue while delivering tailored experiences.

Future Outlook

The future of the India hotel market is rooted in flexibility, design-led hospitality, wellness integration, and digital convenience. As travel normalizes across demographics and regions, hotels that balance local immersion, service personalization, and sustainability will set new benchmarks and stay ahead.

Major companies operating in India Hotel Market are:

• The Indian Hotels Company Limited
• ITC Hotels Limited
• EIH Limited
• The Bharat Hotel
• Lemon Tree Hotels Limited
• The Leela Palaces, Hotels and Resorts
• Marriott International, Inc
• Hilton Worldwide Holdings Inc.
• Radisson Hotel Group
• Accor SA

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“The India Hotel Market is driven by the rising disposable incomes and improved infrastructure across the region. As India’s middle class expands, more consumers can afford both domestic and international travel, increasing demand for hotels across various segments, from budget to luxury. The growing disposable income has made travel a regular activity, further accelerating the need for diverse accommodation options. Simultaneously, significant investments in infrastructure are enhancing connectivity across the country. Upgraded airports, expanded highways, and improved railway networks are making it easier for travelers to reach both popular and emerging tourist destinations. These infrastructural improvements not only make travel more accessible but also stimulate the development of new hotels in previously underserved regions. As the economy continues to grow, the combined effect of rising incomes and better infrastructure is expected to keep driving demand in the Indian hotel market.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Hotel Market By Ownership (Independent, Chained), By Budget (Economy, Premium), By Services Offered (Accommodation, Dining, Meeting & Event Spaces, Others), By Target Audience (Business Travellers, Leisure Travellers, Couples, Families), By Booking Mode (Online, Offline), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Hotel Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Hotel Market.

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