The Indian hospitality sector is witnessing unprecedented momentum, driven by strong domestic tourism, rising foreign arrivals, and a wave of strategic alliances. According to Mandeep S Lamba, President, South Asia, HVS, the industry is firmly on a growth trajectory. The branded supply of around 1,99,000 hotel keys supported nearly 2.5 billion domestic tourist visits in 2023 and 9.65 million foreign arrivals in 2024, underscoring India’s expanding tourism footprint.
However, Lamba highlighted critical gaps. “With just one room for each and every 12,600 travellers, India has one of the lowest room-to-traveller ratios globally,” he said. The scarcity of leisure hotels further accentuates the supply-demand mismatch, he added. The imbalance has pushed average rates upward, making consolidation an attractive strategy for rapid expansion.
The latest wave of hotel deals reflects a strategic shift, he observed. Lamba said, “Today’s wave of deals marks a shift in strategy: brands are not just adding room inventory but diversifying across segments and geographies. The spotlight is now on building a stronger and diversified presence across segments. The Accor-Treebo partnership, the Marriott-CG Hospitality alliance, and IHCL’s recent acquisitions all centre in on the Budget and midscale categories, which are expected to anchor the next wave of growth. There is also a growing interest in technology-enabled platforms that offer operational efficiencies, improved guest acquisition, and dynamic pricing models.” As consolidation gains pace, mergers, and acquisitions are set to define the sector’s evolution, thereby marking a new era for Indian hospitality.
