Hotel industry to hit $31 bn in 2029

New Delhi

India's hotel industry market size is estimated to reach around $31 billion by 2029 from nearly $25 billion in 2024, driven by growth in domestic tourism, according to real estate consultant CBRE.

In its latest report, CBRE said India's listed hotel operators are projected to add over 70,000 keys by 2030. It did not mention the current operational rooms of the listed hotel companies.

"The industry's market size is projected to rise from approximately $24.6 billion in 2024 to about $31 billion by 2029. Domestic tourism is likely to lead this growth, having posted a 40% year-on-year rise in visits to 4.1 billion in 2025," the consultant said.

Anshuman Magazine, Chairman and CEO (India, South-East Asia, Middle East and Africa) of CBRE, said the hospitality sector's trajectory is a testament to India's economic resilience, supported by rising disposable incomes and improving accessibility.

"As the industry accelerates its transition towards experience-driven travel and captures institutionalised demand across spiritual and cultural centres, we anticipate robust and long-term expansion for the country's hospitality ecosystem," Magazine said.

In 2025, CBRE highlighted that the hospitality sector maintained strong growth momentum despite year-end headwinds, such as geopolitical tensions and operational disruptions in the aviation sector.

In the last year, overall occupancy levels reached around 64%. Revenue per available room (RevPAR) rose 11% year-on-year, while average daily rates (ADR) increased by 8.7%.