The key stakeholders of India's hospitality and tourism industry have ambitious goals for the sector by the end of the decade.
India's Vision 2030 aims to make India — the most populated country in the world with nearly 1.5 billion people — a global economic and energy power. The initiative has boosted overall sentiment in the Indian hotel sector, with hoteliers' optimism spread across the country in all price points and in secondary and tertiary cities.
“The sector is benefiting from a convergence of long-term structural drivers, including strong economic growth, rising disposable incomes, rapid infrastructure development, improving air connectivity and a growing preference for branded accommodation,” said Sudeep Jain, managing director for Southwest Asia at IHG Hotels & Resorts.
Hotel demand is no longer concentrated in a handful of gateway cities in India. Improving connectivity is unlocking previously underserved markets, Jain added.
Puneet Chhatwal, managing director and CEO of Indian Hotels Company Limited, said India is being propelled by both its growing economic and transportation stature.
“The industry has witnessed sustained demand led by a permanent shift in consumer behavior with travel becoming a non-discretionary spend,” he said.
Hotel brands will fill most of the identified gaps, Chhatwal said. He predicted the current supply of branded hotel rooms of approximately 100,000 to rise to 300,000 by 2030.
Anil Chadha, managing director of ITC Hotels, said the path for hotel companies to expand in India and hit that 2030 target is through smaller markets.
“As rising incomes, improving infrastructure and evolving consumer aspirations continue to reshape India’s hospitality landscape, our expansion strategy is increasingly focused on Tier 2 and Tier 3 cities,” he said.
The growth of India's infrastructure is similarly improving at a rapid pace, which is a boon for hotel development. Noida International Airport, a new airport near Delhi, started flights in June. NaMo Green Rail, the country’s first hydrogen train, started service in July.
ITC is targeting pilgrimage hubs and emerging business centers and leisure destinations, Chadha said.
“Over the past 24 months, we have maintained a consistent pace of opening one property every month and achieved our highest-ever signings for the second consecutive year,” he said. “Our overall managed portfolio, including pipeline, has surpassed 15,500 keys [in] 63 signings and 28 openings. This momentum reflects our focus on building a diversified presence across India while driving long-term value through a capital-efficient business model.”
Earlier this year, Indian Hotels Company Limited expanded its brand portfolio with a trio of brands ready to take advantage of new possibilities, Chhatwal said. The push is part of the company's own 2030 roadmap, Accelerate 2030.
IHG will continue its strategy of deploying the right brand in the right location with the right partner, adding owner confidence already is strong for the country’s new and emerging markets, Jain said. These markets include Goa; Jaipur, in the state of Rajasthan; Kasauli, in Himachal Pradesh; and Kodaikanal, in Tamil Nadu.
In the last decade, IHG’s Indian hotel portfolio has grown by more than 200% to its current number of 50 hotels, Jain said.
“Our ambition is to reach more than 400 open and pipeline hotels in India within the next five years. We currently have close to 100 hotels in development, representing one of the strongest pipelines in the industry,” he said. “In 2025 alone, we signed nearly 40 hotels across multiple brands. … The focus now is on converting that pipeline into high-quality openings while continuing to strengthen our position across key market segments.
"As our footprint expands, we expect growth to be supported by increasing owner confidence, rising domestic travel demand and the continued evolution of India's hospitality ecosystem.”