India hotel investments skyrocket 67 per cent to $567 million in 2025

India's hospitality sector experienced a remarkable boom in 2025, attracting approximately $567 million in hotel investments across 28 deals. This figure represents a significant 67% jump from the $340 million invested in 2024, signaling robust investor confidence in the nation's burgeoning tourism infrastructure and the sector's underlying strength.

According to a survey by international property consultant Jones Lang LaSalle, the surge in investments highlights a growing belief in India's market potential across various tiers. The diverse capital sources involved, including institutional investors, private equity firms, high-net-worth individuals, family offices, and private hotel owners, demonstrate the sector's broad appeal.

Institutional capital and PE firms were the most active, accounting for 35% of the total investment volume. Other significant contributors included HNIs, family offices, and private hotel owners (27%), listed hotel companies (25%), real estate developers (8%), and owner-operators (5%). This balanced investor composition indicates a healthy market that caters to a wide range of investment philosophies and risk appetites.

Notably, Tier II and III cities are emerging as key drivers of growth within the hospitality sector, capturing a substantial portion of the investment. This trend suggests a decentralization of investment beyond major metropolitan areas, tapping into the potential of developing urban centers.