India’s Hotel Sector Adds Over 14,000 Branded Rooms in 2025

IHCL and Lemon Tree Lead Hotel Room Growth Across India

Indian Hotels Company Limited and Lemon Tree Hotels emerged as the leading contributors to hotel room additions in India during calendar year 2025, as domestic operators continued to expand their presence across the country, according to a report released by HVS Anarock.

The report stated that 14,199 branded hotel rooms were added across India during the year, marking a 5% increase compared to 2024. While overall room inventory continued to grow, the number of new hotel openings declined to 176 properties from 200 in the previous year, indicating a shift towards larger developments and portfolio expansion strategies.

IHCL recorded the highest number of property openings during the year, adding 30 hotels and close to 3,000 rooms, excluding acquisitions. Lemon Tree Hotels expanded its footprint with 21 hotel openings, contributing 1,601 additional rooms to the market.

Domestic hotel operators accounted for 70% of new property openings and 57% of total room additions in 2025, underlining their growing influence in India’s hospitality expansion cycle. International hotel groups, including Accor, Marriott International, and Radisson Hotel Group, focused more on larger-format properties, with an average hotel size of 117 rooms compared to 65 rooms for domestic operators.

Cities including Mumbai, Udaipur, Bengaluru, Goa and Dehradun recorded some of the highest room additions during the year, reflecting continued demand across business, leisure, and pilgrimage travel segments.

The report noted that hospitality demand remained supported by domestic tourism, including weddings, religious travel, concerts, and large-scale events. Expansion activity also moved beyond metro cities into tier-II and tier-III markets, supported by improving connectivity and rising local demand.

Industry executives said operators are increasingly focusing on emerging destinations while maintaining brand consistency and expanding networks across regional markets.

The report also highlighted that hotel development activity remained active in 2025, with approximately 64,118 rooms signed across 586 properties.

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