India Hotels Attract $2B Quiet Investment

India's hospitality industry is attracting significant long-term investment without much fanfare. Approximately $2 billion has been invested in hotel properties across the country in recent months or is currently being processed. Institutional investors, hotel firms, family offices, and wealthy individuals are driving this capital inflow.

The current investment climate favors operational assets or those nearing operational readiness. This strategy aims to secure early cash flows and mitigate execution risks, especially amidst high construction costs and interest rates. While new development is selective, it's pursued where valuation gaps justify the risks.

Recent transactions span diverse locations, from airport corridors to leisure destinations and metropolitan areas. The asset sizes vary, from smaller hotels to larger establishments. Notable deals include Blackstone's acquisition of a 50% stake in Taj Aravali Resort & Spa for $100-110 million in late December 2025.

Further strengthening this momentum, Indian Hotels Company (IHCL) acquired a controlling stake in Brij Hotels for approximately ₹193-225 crore in January and invested ₹240 crore in Atmantan Wellness Resort. Chalet Hotels also expanded its luxury portfolio with acquisitions in Rishikesh and Khandala.

Industry experts note a strong trend of institutional buying of outright acquisitions due to attractive yields. Many investors are focusing on brownfield projects that offer immediate cash flows and reduced execution risk. Currently, investments are being advised on for nearly 1,500 hotel keys, with several closures anticipated in the next two to three quarters.