The Indian hospitality & tourism sector will continue to move forward in a positive direction in 2025 underpinned by rise in domestic, international and business travel. In addition, proliferation in transit-oriented tourism, destination weddings and religious events are further dovetailing the industry. As per the latest study by SKYE Hospitality, a total of 4830 new rooms entered in 2024 across the premium & upscale segments in India. Out of this, 2706 units entered the market place in the first half, followed by 2124 units in H2 2025.
The split is near equal in premium and upscale segment- 52% and 48% respectively.
Most of the major hospitality brands such as IHCL, Accor, Marriott, IHG Hotels, ITC, ROHL, Leela, Wyndham, Sarovar have added new projects. A total of 41 new projects have been unveiled. Not all are greenfield, as unavailability of lands especially in metros make fresh projects cumbersome. As an alternative many brand are using rebranding & strategic partnerships to launch new projects.
During the same period, a cumulative volume of 396,000 Sq. Ft of meeting & banquet space (hotel centric) entered the marketplace, the SKYE report further revealed.
“The Hospitality sector in India looks resilient for 2025 with an expected 10-15% rise in occupancy in major hospitality business chains. Meanwhile the growth won’t be just about the numbers but also depth of offerings. Indian travellers are evolving with more focus on authentic stays and customized experiences that can match individual tastes. This means hotels will have to recalibrate services, relook positioning and be open towards more customization.” Added Mr. Ankit Kansal, MD- SKYE Hospitality.
As per the SKYE report, 31% of the new supplies are in North India, closely followed by west with 28%. East and South accounted for 23% and 18% respectively.
Talking about the future of hospitality the report offered valuable inputs on other emergent categories of tourism such as wellness, medical tourism and religious tourism.
“The traditional boundaries between wellness, vacation and tourism is blurring. Urban households increasingly want to take frequent/ extended breaks to rejuvenate mind & body, detoxify and enrol for mindfulness & yoga retreats. As lifestyle related diseases are proliferating, people now want to heal the root cause rather than quick fixes. This is unfolding new opportunities in the wellness tourism value chain.” Added Ms. Taran Chabra, Director, SKYE Hospitality.
The medical tourism market is set to reach USD 13 billion in 2025, from USD 1.8 billion in 2015, growing at a CAGR of 21.9%. Annually ~ 2 million patients come to India from around ~ 80 countries all over the world. This will unlock opportunities for new hotels, resorts and service apartments, especially in city centre, near major hospitals and healthcare centres.
“In the coming time, Indian hospitality will continue to grow fast at a sustained pace. Growth will be visible in both mainstay tourism as well as other alternate forms The former will be the dominant market force. Yet we will see the latter ramping up in the form of boutique resorts, private villas with bespoke services, branded homes, nature resorts, etc.”, added Ankit Kansal.
