India's branded hotel rooms inventory to cross 300,000 by 2029: Report

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Subscribe to enjoy similar stories. India's organised hotel industry is set to add more than 100,000 rooms to surpass the 300,000-mark by 2029, as religious tourism, rising prosperity, and key infrastructure projects are likely to fuel growth for the hospitality sector, a new report said. The future supply pipeline is focused on leisure destinations, including religious tourism hubs.

Despite some short-term challenges, there is strong optimism that hotels will continue to do well, underpinned by rising discretionary spending and higher occupancy rates. But as the travel and hospitality industry looks toward FY26, a steady decline in stock markets poses challenges, raising concerns about its impact on consumer spending on travel. According to the India Hotel Market Review 2024, released on Friday by hotel consultancy Horwath HTL, hotel operators could adapt to any potential changing consumption environment by targeting higher occupancy rates, aiming at growing from the current 68-70% to about 80% or more in major business cities.

There’s also a growing focus on scaling up operations, with larger companies looking to acquire smaller ones, backed by their stronger financial positions. The industry is also expecting big airport and infra projects like the Navi Mumbai and Jewar airports to drive demand, alongside growth in cities like Bengaluru, Delhi, and Hyderabad. Despite short-term challenges, Goa will also reposition itself for the future, while new convention centres in Mumbai, Delhi, and Jaipur are expected to attract more business travellers, it added.