India hotel investments jump 67% to $567M in 2025; Tier II-III cities capture 40% of deal volume

JLL data shows 28 hotel transactions closed in 2025 with institutional capital dominating, led by Warburg Pincus's $107M bet for a 41% stake in Lemon Tree's Fleur Hotels. Branded signings hit a record 51,647 keys across 424 hotels, up 23% YoY. Q1 2026 momentum continues with $185M deployed, a 58% jump.

— Source publishedMon, 18 May, 2026, 17:00 IST·First seen Mon, 18 May, 2026, 17:59 IST·Source ET Hospitality

What happened

JLL India · JLL reports India hotel investments surged 67% to $567M across 28 deals in 2025, with Tier II-III cities taking 40% share. Branded signings hit

Key facts

  • $567M hotel investments 2025
  • 67% YoY growth
  • 28 transactions
  • 40% volume Tier II-III
  • 51,647 keys signed across 424 hotels
  • 23% signings growth
  • Q1 2026 $185M (+58%)
  • Warburg Pincus $107M for 41% Fleur Hotels stake

Why this matters

Record 51,647 branded keys signed and consolidating institutional capital create a narrowing window for platform M&A; targets in Tier II-III with branded affiliations should be screened now before valuations reset higher.