Anticipated 22% Thrive in India's Hotel Investment Sector by 2024, According to JLL Report
Get ready to invest, as the Indian hotel market's looking hotter than ever! According to the latest report by JLL, the Hotel Investment Trends - India H1 2024, the hotel investment market in India is on track for an incredible 22 percent increase in total transaction volume by the end of 2024, reaching a whopping USD 413 million, up from the modest USD 93 million in the first half of the year [1][2].
The report pinpoints strong domestic demand and bustling commercial activities as the driving factors behind this growth, sparking increased investment interest and a sharp rise in transaction volumes in Tier I markets such as Mumbai, Hyderabad, Pune, and Chennai [1]. In the first six months of 2024, no less than six major hotel transactions went down, ranging from operational assets to greenfield development projects [1].
You might wonder where your investment dollars will be going in the second half of 2024. Not to worry - around 78 percent of the projected transaction volumes are expected to come from Tier I markets [1]. And let's not forget about the promising activity in Tier II and III markets. They snatched a major chunk of hotel signings during the first half of 2024, signaling a bright future for these up-and-coming markets [1].
If you're curious about where the money's going, approximately 72 percent of the transaction volume during this period involved operational hotels, 23 percent involved hotels under construction, and the remaining share consisted of land leases [1]. - So, whether you're interested in operational hotels or wading into fresh territory with greenfield development projects, the time's ripe for action!
JLL expects continued momentum in these segments, and the report predicts the hospitality industry in the country is on track for a bright future. The second half of 2024 has already seen positive developments, like JLL facilitating two key transactions totaling USD 70 million, including an operational hotel in Mumbai and a premium hotel land sale in Goa [1].
Jaideep Dang, Managing Director of Hotels & Hospitality at JLL, couldn't be more excited about this growing investment landscape. "The first half of 2024 created a dynamic hotel transaction landscape for the rest of the year. Investor interest has increased in both operational hotels and land sales for new developments. This surge in activity highlights the allure of the hotel market in India, supported by strong economic indicators, improved connectivity, and a flourishing commercial sector," Dang said [1].
So, grab your wallets and prepare for the future - it's clear that India's hotel investment market is on fire! With over 6,000 new hotel keys added in the first half of 2024, this expanding industry shows it can effectively weather market changes, fueled by both local demand and international interest.
References: [1] Hotel Investment Market in India Poised for Growth: JLL Report [2] Seven Hidden Wonders to Add to Your Travel Bucket List [3] Top Spots for Birdwatching in India [4] India's Hotel Investment Industry Attracting More Investments [5] India's Hospitality Sector Eyeing Multi-Billion Dollar Investments in the Next Four Years [6] Indian Hotel Investment Market Projected to Grow by 22% in 2024: JLL Report
The increasing investment in the hotel sector suggests that sports enthusiasts might find new sports complexes or facilities being developed in Tier I cities such as Mumbai, Hyderabad, Pune, and Chennai.
The hospitality industry's anticipated growth in India has led to a rise in investment interest, particularly in operational hotels, which could potentially open opportunities for sponsorship or partnerships in sports events.
