Hotel investments shift to smaller cities as boom moves beyond tier-I markets

According to a new report, HVS Anarock HOPE 2025 Special, shared exclusively withMint, over 47,500 hotel rooms were signed across more than 486 properties in 2024—marking a record year for expansion. Notably, 74% of these signings were in tier-II, III and IV cities, up from 65% in 2019.

As economic activity shifts and connectivity improves, hotel chains are aggressively expanding into these cities. Lower development costs and rising demand for branded accommodations make these emerging markets attractive to developers eager to tap into India’s next wave of hospitality growth.

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