‘Hotel industry to hit $31 bn in 2029, hotel cos to add 70k rooms by 2030’

New Delhi: India’s hotel industry’s 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 CBRE.

In its latest report, real estate consultant 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 per cent year-on-year rise in visits to 4.1 billion in 2025,” the consultant said.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, 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, like geopolitical tensions and operational disruptions in the aviation sector.

In the last year, overall occupancy levels reached around 64 per cent.

Revenue per available room (RevPAR) rose 11 per cent year-over-year, while average daily rates (ADR) increased by 8.7 per cent.

On the outlook, the consultant said investment activity in the hospitality sector is likely to remain active through 2026, supported by sustained travel demand and continued investor interest in scalable hospitality platforms.