Hotel chains and property developers have signed up as many as 10,000 rooms across India in October, with most of the deals targeting smaller cities and emerging markets. According to Mint data, three listed companies - Indian Hotels Co. (IHCL), Lemon Tree Hotels and Brigade Group - account for more than 7,000 of those rooms. The deals are specifically aimed at tier 3, 4 cities, airport hubs and emerging leisure markets, as operators see significant growth potential in these areas.
The expansion is being driven by strong domestic travel demand, with the tourism ministry recording 4.29 billion domestic tourist visits in 2025, up 45.6% from a year ago. As reported by Mint, Indians travelling within the country are behind this rush for hotel capacity. However, industry experts note that a signed deal is not immediately operational - a new hotel typically takes three to five years to open according to HVS Anarock consultancy.
The biggest single deal is Lemon Tree's tie-up with developer Omaxe, under which it will run about 4,000 rooms across eight locations. According to Mint, IHCL, which owns the Taj brand, signed eight hotels with over 2,000 rooms with Adani Airport Holdings. The IHCL-Adani agreement spans eight hotels across Mumbai, Ahmedabad, Lucknow and Guwahati, with Adani developing the hotels while IHCL operates them. Lemon Tree also signed three Gateway hotels in October in Agra, Alwar, and Lucknow, adding another 569 rooms to its pipeline.
The country expects to have 350,400 branded rooms by 2030, driven primarily by growth in domestic demand and expanding projects in tier II and tier III cities. As reported by Mint, Mandeep S. Lamba, president and chief executive officer (South Asia) at HVS Anarock, noted that branded hotel room penetration is still exceptionally low for India's economy size. Business travel demand is also contributing to expansion, with India recording around 66 million sq. ft. of office absorption in the first nine months of 2026, a record for the period.
Hotel companies are increasingly partnering with large developers that have land and capital to build properties, while operators bring their brands and management expertise. According to Mint, Rattan Keswani, independent hospitality consultant, noted that hotel companies are signing at least three to four hotel deals with the same promoters and developers. Other companies including ITC Hotels and international chains like Marriott International, Hyatt, and Radisson Hotel Group are also adding inventory through various partnerships across India's emerging markets.
