· Organised hotel sector demand could drive 190,000-210,000 incremental hotel keys by 2035

· Hospitality sector attracted approximately USD 905 million in real estate investments between 2024 and H1 2026

· Gateway cities retain pricing upside as leisure, cultural and spiritual destinations widen the growth map

National, October 22, 2026: India’s organised hospitality sector is estimated to require approximately 120-125 million sq. ft. of additional real estate by 2035, equivalent to around 190,000-210,000 incremental hotel keys, according to CBRE Research’s latest report, Beyond Core: A 2035 View of India’s Alternate Sectors – Part I.

The report highlights a broad-based development cycle across economy, midscale, upscale, upper-upscale and luxury hotel categories. The opportunity will be shaped by market selection, operating model, land availability and the ability to align with evolving business, leisure and experience-led travel demand.

“India’s hospitality opportunity is becoming increasingly diverse, with growth extending beyond traditional hotel markets and formats. As business, leisure and experience-led travel evolve, developers and operators are taking a more market-led approach to identifying opportunities. This involves understanding the demand drivers of each destination and building strong operating partnerships. The focus is moving beyond adding inventory to creating differentiated hospitality assets that remain relevant to changing traveller preferences and deliver sustainable long-term value,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

Growth beyond metros

Gateway cities account for approximately 35% of branded hotel inventory but generate about 50% of sector revenues, supported by corporate, MICE and transit demand, the report highlighted. At the same time, leisure, cultural and spiritual destinations are creating scalable opportunities for resort-led and experience-driven formats beyond traditional urban centres.

Investment outlook

The report also noted that the hospitality sector attracted approximately USD 905 million in real estate investments between 2024 and H1 2026. Investor interest is increasingly shifting towards platform-level commitments, strategic joint ventures and income-generating assets, while management contracts and franchise partnerships are enabling operators to expand with lighter balance sheets.

The report underscored that management contracts, franchise partnerships, brownfield acquisitions and rebranding are important routes for operators and investors seeking to build scale and accelerate market entry. It also identified selective premiumisation across luxury, lifestyle and premium resort formats as a potential source of stronger pricing power.

“Domestic tourism is emerging as a structural driver of India’s hospitality sector, supported by rising discretionary spending, improved connectivity and growing interest in leisure, wellness and destination-led travel. Operators are increasingly pursuing strategic premiumisation across luxury, lifestyle and

resort formats to capture evolving traveller preferences. Supported by healthy demand fundamentals, this trend is expected to strengthen pricing power and support ADR growth across segments,” said Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE.