Mumbai, October 14, 2026: India’s hotel investment market recorded a 197% year-on-year increase in transaction volumes during the first half of 2026, reaching USD 497 million across eleven deals, according to JLL’s latest report. The full-year transaction volume is projected to cross USD 1.1 billion, up 94% from USD 567 million in 2025.
The surge was driven by a shift in investor profile, with real estate developers accounting for 58% of total transaction volume in H1 2026, overtaking High-Net-Worth Individuals (HNIs), family offices, and private hotel owners, who led with a 54% share in the previous year. Listed hotel companies contributed 31.1% of volumes, while HNIs, family offices, and private hotel owners accounted for 8.2%.
Tier II and III cities lead activity
Tier II and III cities captured 60% of investment volumes in the first half of 2026, indicating a geographical shift away from traditional metropolitan hubs. Notable transactions included luxury resorts in Kerala and Coorg, luxury hotels in Agra, Mussoorie, and Noida, as well as upper-upscale properties in Udaipur and Jaipur. The second half has seen continued momentum, with acquisitions in Ahmedabad, Bengaluru, and Pune, and land transactions totaling 420 acres in the Mumbai Metropolitan Region and 15 acres in Goa, valued at approximately USD 313 million.
Distressed assets and IBC transactions
Transactions involving distressed assets under the Insolvency and Bankruptcy Code (IBC) generated USD 288 million, representing 58% of H1 2026’s total transaction volume. Operational hotels across all segments made up 70% of transaction volume, with under-construction or non-operational hotels at 23% and land leases comprising the remainder. The luxury segment led with 51% of total volume, followed by upscale (35%), upper-upscale (12%), and economy (2%).
Branded hotel pipeline and openings
Branded hotel signings reached 29,360 keys as of June 2026, with 74% concentrated in Tier II and III cities. Management contracts accounted for 77% of total keys, franchises for 22%, and lease/revenue share agreements for 1%. Greenfield developments added 13,689 keys, and 15 large-format hotels with over 250 keys were signed in H1 2026, up from five in the same period last year. Branded hotel openings in H1 2026 totaled 5,048 keys, with 71% in Tier II and III cities. The upscale segment led openings with 45%, followed by midscale (28%), economy (14%), upper-upscale (8%), and luxury (5%).
Outlook and investor trends
JLL projects continued investor interest in high-quality, branded assets in established business and leisure destinations. Institutional capital in platform-level investments reached nearly USD 445 million in H1 2026. Gaurav Sharma, Managing Director Hotels, India, and Senior Director Hotels Capital Markets, Asia at JLL, said the market is undergoing a fundamental reshaping, with real estate developers now the dominant investors and Tier II and III cities driving capital deployment. He noted that limited availability of institutional-grade assets and strong operational fundamentals are likely to sustain competitive bidding and support asset valuations.
USD 1 was equivalent to INR 95 in 2026. JLL’s transaction volume figures exclude strategic partnerships, non-hospitality assets in mixed-use portfolio transactions, and government site auctions with annual lease payments.
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