<p>Bengaluru: In the first quarter of 2026, investments in the country's hotel sector jumped 58 per cent to $185 million compared to $117 million in the year-ago period, according to a report by JLL.</p><p>It said notable activity includes Warburg Pincus acquiring a 41 per cent stake in Fleur Hotels (Lemon Tree Hotels subsidiary) with a $107 million commitment for portfolio expansion, alongside operating hotels, land monetisation transactions, and platform consolidation acquisitions.</p><p>In 2025, hotel investments reached about $567 million across 28 transactions, a 67 per cent increase from the $340 million recorded in 2024. JLL said this surge reflects robust investor confidence in India’s tourism infrastructure and the sector's fundamental strength across multiple market tiers.</p><p>Tier II and III cities emerged as significant growth engines, capturing about 40 per cent of total transaction volume, with momentum sustained from the previous year. These markets featured premium assets, including luxury resorts in Rishikesh, upper-upscale properties in Goa, and upscale to midscale hotels across emerging urban centres such as Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.</p>.India's realty sector attracts $6.7 billion private equity funding in 2025.<p>“India’s hotel investment market is reflecting a clear step-up in both investor confidence and market depth, with rising transaction activity supported by a broader mix of institutional and domestic capital. What is particularly encouraging is the continued expansion beyond gateway cities, with Tier II and III markets steadily evolving into more mature, investment-grade destinations backed by improving operating performance and scalability. This shift is meaningfully expanding the investable universe and enabling more strategic capital deployment across geographies," Gaurav Sharma, Managing Director, Hotels, India & Senior Director, Hotels Capital Markets, Asia, said.</p><p>The momentum has carried strongly into 2026, with a robust start to the year underscoring sustained capital appetite. Beyond volumes, we are seeing increasing sophistication in how capital is being deployed, through platform-led strategies and institutional partnerships, signalling a more mature and organised investment landscape. </p><p>At the same time, strong asset performance has introduced a degree of supply-side discipline, with high-quality hotels being tightly held, making available opportunities more selective and highly sought after, added Sharma.</p>
<p>Bengaluru: In the first quarter of 2026, investments in the country's hotel sector jumped 58 per cent to $185 million compared to $117 million in the year-ago period, according to a report by JLL.</p><p>It said notable activity includes Warburg Pincus acquiring a 41 per cent stake in Fleur Hotels (Lemon Tree Hotels subsidiary) with a $107 million commitment for portfolio expansion, alongside operating hotels, land monetisation transactions, and platform consolidation acquisitions.</p><p>In 2025, hotel investments reached about $567 million across 28 transactions, a 67 per cent increase from the $340 million recorded in 2024. JLL said this surge reflects robust investor confidence in India’s tourism infrastructure and the sector's fundamental strength across multiple market tiers.</p><p>Tier II and III cities emerged as significant growth engines, capturing about 40 per cent of total transaction volume, with momentum sustained from the previous year. These markets featured premium assets, including luxury resorts in Rishikesh, upper-upscale properties in Goa, and upscale to midscale hotels across emerging urban centres such as Ludhiana, Nashik, Vadodara, Udaipur, and Lonavala.</p>.India's realty sector attracts $6.7 billion private equity funding in 2025.<p>“India’s hotel investment market is reflecting a clear step-up in both investor confidence and market depth, with rising transaction activity supported by a broader mix of institutional and domestic capital. What is particularly encouraging is the continued expansion beyond gateway cities, with Tier II and III markets steadily evolving into more mature, investment-grade destinations backed by improving operating performance and scalability. This shift is meaningfully expanding the investable universe and enabling more strategic capital deployment across geographies," Gaurav Sharma, Managing Director, Hotels, India & Senior Director, Hotels Capital Markets, Asia, said.</p><p>The momentum has carried strongly into 2026, with a robust start to the year underscoring sustained capital appetite. Beyond volumes, we are seeing increasing sophistication in how capital is being deployed, through platform-led strategies and institutional partnerships, signalling a more mature and organised investment landscape. </p><p>At the same time, strong asset performance has introduced a degree of supply-side discipline, with high-quality hotels being tightly held, making available opportunities more selective and highly sought after, added Sharma.</p>