India’s hotel sector investments rise 58 per cent to US$185 million in Q1 2026: JLL
2 min read
In the January‑March period, investments in India’s hotel sector rose 58% to USD 185 million, reflecting investor confidence in the sector’s growth prospects, as reported by JLL.
During the same period last year, the hotel industry drew USD 117 million.
On Monday, JLL India unveiled its report titled ‘Hotel Investment Trends in India: 2025’, noting that calendar‑year‑2025 hotel investments jumped 67% to USD 567 million, with the upward momentum carrying into the March quarter.
“Q1 2026 (January‑March) saw strong transaction activity, driven by the momentum from 2025. Total deal volume hit roughly USD 185 million, up 58% from the about USD 117 million recorded in Q1 2025,” the report stated.
Deals in the March quarter covered operating hotels, land monetisation, and platform‑level acquisitions, the consultant added.
In the January‑March quarter, Warburg Pincus purchased a 41% stake in Fleur Hotels—a Lemon Tree Hotels subsidiary—and earmarked roughly USD 107 million to expand its owned‑hotel portfolio.
JLL anticipates the investment momentum will persist, fueled by ample liquidity at listed hotel firms and the prospective market debut of further hotel operators.
The consultant added that institutional investors and private‑equity firms are also eyeing hotel‑portfolio acquisitions.
“Land monetisation at airports and government‑run land auctions in micro‑markets such as Yashobhoomi (IICC), Neopolis in Hyderabad, Fintech City in Chennai, and Jewar Airport are generating fresh investment opportunities,” JLL said.
Discussing the 2025 calendar year, the consultant pointed out that hotel‑industry investment activity rose 67% year‑on‑year.
Altogether, 28 transactions totaled roughly USD 567 million, a notable increase from the approximately USD 340 million recorded in 2024.
Institutional capital and private‑equity led the deal flow, followed by high‑net‑worth individuals, family offices, private hotel owners, listed hotel companies, real‑estate developers, and owner‑operators.
Tier‑1 cities contributed roughly 60% of the total volume, while tier‑2 and tier‑3 cities together made up the remaining 40%.
In the previous year, 103 branded hotels opened, delivering approximately 8,990 rooms.
In 2025, branded hotel agreements accounted for 51,647 keys across 424 properties, marking a 23% increase over the prior year.
