New Delhi, Oct 14 — India’s hospitality sector saw transaction volumes reach $497 million across eleven deals in the first half of 2026, a 197 per cent increase from $167 million a year earlier, a report said on Wednesday, adding that full‑year 2026 transaction volumes are projected at about $1.1 billion.
The report from JLL said the momentum is expected to continue and that transaction volumes will see a robust 94 per cent year-on-year growth over CY 2025's $567 million.
Real estate developers emerged as the dominant investor group in H1 2026, accounting for 58 per cent of total volume. The report noted a significant shift from the previous year when High-Net-Worth (HNIs) individuals, family offices, and private hotel owners led the market with approximately 54 per cent share
Listed hotel companies contributed 31.1 per cent of volumes, while High-Net-Worth (HNIs), family offices, and private hotel owners accounted for 8.2 per cent.
“Real estate developers now command majority of transaction activity, up from a minor share previously, while Tier II and III cities have captured 60 per cent of investment volumes, signalling a fundamental geographical rebalancing of capital deployment,’’ said Gaurav Sharma, Managing Director Hotels, India, Senior Director Hotels Capital Markets, Asia, JLL.
The convergence of institutional capital, evidenced by nearly $445 million in strategic platform investments, robust consolidation activity through marquee acquisitions, and sustained signing momentum of more than 29,000 keys in H1 alone, positions Indian hospitality for a multi-year growth trajectory.
“With limited availability of institutional-grade assets, strong operational fundamentals, and IBC-led opportunities unlocking distressed asset value, we anticipate competitive bidding to intensify, " Sharma added.
The sector's appeal centres around capturing India's evolving consumption story, where emerging destinations and experiential leisure are redefining investment theses for the next decade, the report noted.
Insolvency and Bankruptcy Code (IBC)-led transactions demonstrated strong investor appetite for distressed-asset opportunities, generating approximately USD 288 million, representing 58 per cent of H1 2026's total transaction volume.
The report forecasted that investor interest is expected to concentrate on high-quality, branded assets with strong operating fundamentals in established business and leisure destinations. Institutional capital in platform-level investments is projected to gain further momentum as investors pursue scale, operational efficiencies, and diversified market exposure.