Key Insights
The Indian hotel industry, valued at $247.31 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 13.96% from 2025 to 2033. This expansion is fueled by several key factors. Rising disposable incomes, a burgeoning middle class with increased travel and leisure spending, and the growth of the tourism sector are significant drivers. Furthermore, the increasing popularity of domestic tourism and the rise of budget-friendly hotel chains are further stimulating market growth. The industry is segmented by type (chain vs. independent hotels) and by service level (budget/economy, mid-scale, luxury, and service apartments). The competitive landscape includes established players like the Oberoi, ITC, Taj, and Lemon Tree Hotels, alongside rapidly expanding chains like OYO Rooms, demonstrating a mix of luxury offerings and budget-friendly options catering to diverse market segments. The presence of robust loyalty programs by major hotel brands also enhances customer retention and drives market expansion. Regional variations exist, with North, South, East, and West India exhibiting differing growth trajectories based on specific tourism patterns and infrastructure development.
Indian Hotel Industry Market Size (In Million)
The sustained growth trajectory of the Indian hotel industry is, however, subject to certain challenges. Fluctuations in the global economy can impact international tourism, and infrastructural limitations in certain regions might hamper expansion. Furthermore, seasonal variations in tourist influx can influence occupancy rates. Despite these restraints, the long-term outlook remains positive, driven by the country's sustained economic growth, increasing urbanization, and a growing preference for comfortable and convenient accommodation options. The diverse hotel segments, catering to a wide range of budgets and preferences, position the Indian hotel industry for continued success and expansion throughout the forecast period. Strategic investments in infrastructure development and sustainable tourism practices will be crucial in maximizing the industry’s potential and mitigating potential risks.
Indian Hotel Industry Company Market Share
Indian Hotel Industry Market Report: 2019-2033
This comprehensive report provides an in-depth analysis of the Indian hotel industry, covering market trends, competitive landscape, growth drivers, and future prospects from 2019 to 2033. The report is crucial for investors, industry stakeholders, and businesses operating or planning to enter the dynamic Indian hospitality sector. The study period is 2019-2033, with the base and estimated year as 2025. The forecast period is 2025-2033, and the historical period covers 2019-2024. The report incorporates key performance indicators (KPIs) and actionable insights to facilitate informed decision-making.
Indian Hotel Industry Market Concentration & Innovation
The Indian hotel industry exhibits a moderately concentrated market structure, with a few large players commanding significant market share, while numerous smaller independent hotels and budget chains also contribute substantially. The market share of the top 5 players in 2024 was approximately xx%. Key players like Oberoi Hotels and Resorts, ITC Hotels, Lemon Tree Hotels, Taj Hotels, and The Leela Palaces Hotels and Resorts drive innovation through investments in technology, service enhancements, and brand expansion. OYO Rooms, although a significant player, focuses on the budget segment and has a distinct business model.
- Innovation Drivers: Technological advancements (e.g., online booking platforms, revenue management systems, AI-powered chatbots), evolving consumer preferences (e.g., experiential travel, personalized services), and sustainable tourism practices.
- Regulatory Framework: The government's initiatives to boost tourism infrastructure and ease regulations have positively impacted industry growth. However, land acquisition and environmental regulations remain challenges.
- Product Substitutes: The rise of alternative accommodations like homestays and serviced apartments presents competition, but also presents opportunities for collaboration and diversification.
- End-User Trends: Growing disposable incomes, increasing domestic and international tourism, and a preference for branded hotel experiences are key drivers of market growth.
- M&A Activities: The Indian hotel industry has seen significant M&A activity in recent years, driven by expansion strategies and consolidation. The total value of M&A deals in 2024 was approximately xx Million.
Indian Hotel Industry Industry Trends & Insights
The Indian hotel industry is experiencing robust growth, driven by a burgeoning middle class, rising disposable incomes, and increased inbound and outbound tourism. The industry's CAGR during the historical period (2019-2024) was xx%, and it is projected to reach xx% during the forecast period (2025-2033). Market penetration of branded hotels is increasing as more consumers opt for the reliability and consistency of established brands. Technological disruptions such as online travel agents (OTAs), revenue management systems, and mobile-based booking platforms have redefined the customer experience and created new avenues for market entry. Consumer preferences are shifting towards experiences, personalized services, and sustainable hospitality. The competitive dynamics are intense, with both established players and new entrants vying for market share through various strategies. The luxury segment continues to be a high-growth area with a growing preference for luxury experiences. Budget and mid-scale segments also show significant growth fuelled by cost-consciousness and a preference for convenience.
Dominant Markets & Segments in Indian Hotel Industry
Dominant Regions/Segments:
- By Type: Chain hotels dominate the market share, owing to their brand recognition, consistent service quality, and wider reach. Independent hotels cater to niche markets and regional preferences.
- By Segment: The budget and economy hotel segment exhibits the highest growth rate due to cost consciousness. The luxury segment showcases higher profitability and attracts high-spending travelers. The mid and upper mid-scale segments contribute substantially to overall revenue. Service apartments are growing as an alternative accommodation option, particularly for extended stays.
Key Drivers:
- Economic Policies: Government incentives, infrastructure development, and investment in tourism promotion have positively influenced the industry's expansion.
- Infrastructure Development: Improved airport connectivity, road networks, and other infrastructure have made travel to various destinations more accessible and convenient.
Indian Hotel Industry Product Developments
The Indian hotel industry is witnessing significant product innovation, driven by technological advancements and evolving consumer preferences. Hotels are integrating smart room technology, personalized guest services, and sustainable practices. Cloud-based property management systems (PMS) are improving operational efficiency, while mobile apps enhance the guest experience. Competition is driving innovation in various segments, leading to the development of unique offerings and increased value propositions. This includes innovative loyalty programs like those offered by Marriott International Inc, Hyatt Hospitality company, Radisson Hotel Group, and The Park Hotel.
Report Scope & Segmentation Analysis
This report segments the Indian hotel industry by type (chain hotels and independent hotels) and by segment (service apartments, budget and economy hotels, mid and upper mid-scale hotels, and luxury hotels). Each segment's growth projections, market size, and competitive dynamics are analyzed in detail. For instance, the budget hotel segment is expected to experience rapid growth owing to increasing affordability and availability. The luxury segment is also experiencing substantial growth due to rising affluence and a preference for premium experiences.
Key Drivers of Indian Hotel Industry Growth
The growth of the Indian hotel industry is fueled by several factors:
- Economic Growth: Rising disposable incomes and a growing middle class are driving increased tourism and hospitality spending.
- Technological Advancements: Online booking platforms, revenue management systems, and mobile apps are enhancing operational efficiency and improving customer experience.
- Government Initiatives: Government policies to promote tourism infrastructure and ease regulations are attracting investment and stimulating growth.
Challenges in the Indian Hotel Industry Sector
The Indian hotel industry faces several challenges:
- High Land Costs: Acquiring land for hotel development in prime locations can be expensive.
- Supply Chain Disruptions: The industry is susceptible to global and domestic supply chain disruptions.
- Intense Competition: The industry faces intense competition from both established players and new entrants. This competition places downward pressure on pricing and profitability.
Emerging Opportunities in Indian Hotel Industry
Several emerging trends present exciting opportunities:
- Growth of Experiential Travel: Consumers are increasingly seeking unique and memorable experiences.
- Sustainable Tourism: There is increasing demand for eco-friendly and sustainable hotel options.
- Technological Integration: The incorporation of technology in hotel operations presents opportunities for efficiency gains and enhanced customer experiences.
Leading Players in the Indian Hotel Industry Market
- Oberoi Hotels and Resorts
- ITC Hotels
- Lemon Tree Hotels
- Taj Hotels
- The Leela Palaces Hotels and Resorts
- OYO Rooms
- The Park Hotel
- Radisson Hotel Group
- Hyatt Hospitality company
- Marriott International Inc
Key Developments in Indian Hotel Industry Industry
- March 2024: Suba Group launched Click Hotel in Pithampur, targeting business travelers.
- February 2024: Radisson Hotel Group opened its first internationally branded hotel in Ayodhya.
- September 2023: Parkside Hotels & Resorts secured contracts for at least 20 new hotels by the end of 2024.
Strategic Outlook for Indian Hotel Industry Market
The Indian hotel industry is poised for continued growth, driven by a robust economy, rising tourism, and technological innovation. The increasing adoption of technology, focus on personalized experiences, and sustainability initiatives will shape the future of the industry. The expansion of branded hotels into tier-2 and tier-3 cities presents significant opportunities for growth. The sector is projected to witness significant expansion in the coming years, driven by both domestic and international tourists.
Indian Hotel Industry Segmentation
-
1. Type
- 1.1. Chain Hotels
- 1.2. Independent Hotels
-
2. Segment
- 2.1. Service Apartments
- 2.2. Budget and Economy Hotels
- 2.3. Mid and Upper Mid-Scale Hotels
- 2.4. Luxury Hotels
Indian Hotel Industry Segmentation By Geography
- 1. India
Indian Hotel Industry Regional Market Share
Geographic Coverage of Indian Hotel Industry
Indian Hotel Industry REPORT HIGHLIGHTS
| Aspects | Details |
|---|---|
| Study Period | 2020-2034 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| Forecast Period | 2026-2034 |
| Historical Period | 2020-2025 |
| Growth Rate | CAGR of 13.96% from 2020-2034 |
| Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Growth in Travel and Tourism in India; Increase in the Number of Hotel Projects
- 3.3. Market Restrains
- 3.3.1. Lack of Skilled Labor is a Challenge for the Market; Sustainability and Competition Threaten Industry Success
- 3.4. Market Trends
- 3.4.1. Increase in the Number of Hotel Projects is Driving the Market
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. Indian Hotel Industry Analysis, Insights and Forecast, 2020-2032
- 5.1. Market Analysis, Insights and Forecast - by Type
- 5.1.1. Chain Hotels
- 5.1.2. Independent Hotels
- 5.2. Market Analysis, Insights and Forecast - by Segment
- 5.2.1. Service Apartments
- 5.2.2. Budget and Economy Hotels
- 5.2.3. Mid and Upper Mid-Scale Hotels
- 5.2.4. Luxury Hotels
- 5.3. Market Analysis, Insights and Forecast - by Region
- 5.3.1. India
- 5.1. Market Analysis, Insights and Forecast - by Type
- 6. Competitive Analysis
- 6.1. Market Share Analysis 2025
- 6.2. Company Profiles
- 6.2.1 Oberoi Hotels and Resorts
- 6.2.1.1. Overview
- 6.2.1.2. Products
- 6.2.1.3. SWOT Analysis
- 6.2.1.4. Recent Developments
- 6.2.1.5. Financials (Based on Availability)
- 6.2.2 ITC Hotels
- 6.2.2.1. Overview
- 6.2.2.2. Products
- 6.2.2.3. SWOT Analysis
- 6.2.2.4. Recent Developments
- 6.2.2.5. Financials (Based on Availability)
- 6.2.3 Lemon Tree Hotels
- 6.2.3.1. Overview
- 6.2.3.2. Products
- 6.2.3.3. SWOT Analysis
- 6.2.3.4. Recent Developments
- 6.2.3.5. Financials (Based on Availability)
- 6.2.4 Taj Hotels
- 6.2.4.1. Overview
- 6.2.4.2. Products
- 6.2.4.3. SWOT Analysis
- 6.2.4.4. Recent Developments
- 6.2.4.5. Financials (Based on Availability)
- 6.2.5 The Leela Palaces Hotels and Resorts
- 6.2.5.1. Overview
- 6.2.5.2. Products
- 6.2.5.3. SWOT Analysis
- 6.2.5.4. Recent Developments
- 6.2.5.5. Financials (Based on Availability)
- 6.2.6 OYO Rooms*List Not Exhaustive 6 3 Loyalty Programs Offered by Major Hotel Brand
- 6.2.6.1. Overview
- 6.2.6.2. Products
- 6.2.6.3. SWOT Analysis
- 6.2.6.4. Recent Developments
- 6.2.6.5. Financials (Based on Availability)
- 6.2.7 The Park Hotel
- 6.2.7.1. Overview
- 6.2.7.2. Products
- 6.2.7.3. SWOT Analysis
- 6.2.7.4. Recent Developments
- 6.2.7.5. Financials (Based on Availability)
- 6.2.8 Radisson Hotel Group
- 6.2.8.1. Overview
- 6.2.8.2. Products
- 6.2.8.3. SWOT Analysis
- 6.2.8.4. Recent Developments
- 6.2.8.5. Financials (Based on Availability)
- 6.2.9 Hyatt Hospitality company
- 6.2.9.1. Overview
- 6.2.9.2. Products
- 6.2.9.3. SWOT Analysis
- 6.2.9.4. Recent Developments
- 6.2.9.5. Financials (Based on Availability)
- 6.2.10 Marriott International Inc
- 6.2.10.1. Overview
- 6.2.10.2. Products
- 6.2.10.3. SWOT Analysis
- 6.2.10.4. Recent Developments
- 6.2.10.5. Financials (Based on Availability)
- 6.2.1 Oberoi Hotels and Resorts
List of Figures
- Figure 1: Indian Hotel Industry Revenue Breakdown (Million, %) by Product 2025 & 2033
- Figure 2: Indian Hotel Industry Share (%) by Company 2025
List of Tables
- Table 1: Indian Hotel Industry Revenue Million Forecast, by Type 2020 & 2033
- Table 2: Indian Hotel Industry Revenue Million Forecast, by Segment 2020 & 2033
- Table 3: Indian Hotel Industry Revenue Million Forecast, by Region 2020 & 2033
- Table 4: Indian Hotel Industry Revenue Million Forecast, by Type 2020 & 2033
- Table 5: Indian Hotel Industry Revenue Million Forecast, by Segment 2020 & 2033
- Table 6: Indian Hotel Industry Revenue Million Forecast, by Country 2020 & 2033
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the Indian Hotel Industry?
The projected CAGR is approximately 13.96%.
2. Which companies are prominent players in the Indian Hotel Industry?
Key companies in the market include Oberoi Hotels and Resorts, ITC Hotels, Lemon Tree Hotels, Taj Hotels, The Leela Palaces Hotels and Resorts, OYO Rooms*List Not Exhaustive 6 3 Loyalty Programs Offered by Major Hotel Brand, The Park Hotel, Radisson Hotel Group, Hyatt Hospitality company, Marriott International Inc.
3. What are the main segments of the Indian Hotel Industry?
The market segments include Type, Segment.
4. Can you provide details about the market size?
The market size is estimated to be USD 247.31 Million as of 2022.
5. What are some drivers contributing to market growth?
Growth in Travel and Tourism in India; Increase in the Number of Hotel Projects.
6. What are the notable trends driving market growth?
Increase in the Number of Hotel Projects is Driving the Market.
7. Are there any restraints impacting market growth?
Lack of Skilled Labor is a Challenge for the Market; Sustainability and Competition Threaten Industry Success.
8. Can you provide examples of recent developments in the market?
In March 2024, Suba Group of Hotels launched its third hotel i.e., Click Hotel, in Pithampur, Madhya Pradesh, designed to cater to the new age business travelers and features 63 premium contemporary rooms and suites.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 3800, USD 4500, and USD 5800 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "Indian Hotel Industry," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the Indian Hotel Industry report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the Indian Hotel Industry?
To stay informed about further developments, trends, and reports in the Indian Hotel Industry, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database
Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)
Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations
Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence