Why are Indian universities becoming hospitality hotspots?

Universities attract a steady stream of parents, faculty, and event attendees, creating year-round demand for hotels.

What is the estimated value of university-driven hospitality demand in India?

The demand generated by universities for the hospitality sector in India is estimated to be valued at Rs 700 crore.

Which hotel groups are expanding near Indian universities?

Major groups like IHCL, Radisson Hotel Group, and ITC Hotels are actively pursuing expansion opportunities near universities.

Home / Business and Economy / Universities Fuel New Hospitality Boom in India

Universities Fuel New Hospitality Boom in India

23 Nov

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Summary

University towns are driving a new hospitality boom valued at Rs 700 crore.
Premium universities act as year-round economic engines for hotels.
Major hotel groups are actively exploring new opportunities near campuses.

Universities Fuel New Hospitality Boom in India

A notable shift is occurring in India's hospitality industry, with university towns emerging as a significant growth driver. This emerging segment, now valued at an estimated Rs 700 crore, is reshaping occupancy patterns, particularly in tier-2 and tier-3 cities. Premium educational institutions are acting as consistent economic engines, attracting a predictable flow of guests including parents during admissions and graduations, visiting faculty, and participants of various campus events.

Major hospitality players are recognizing and capitalizing on this demand. Indian Hotels Company (IHCL) views the education segment as a targeted expansion category, attracted by the robust demand base and limited branded supply near large universities. Similarly, Radisson Hotel Group and ITC Hotels are actively evaluating and pursuing opportunities in key education corridors like Manipal, Pune, and Kota, citing the resilience and long-term stability these micro-markets offer.