Uttar Pradesh's hotel investment pipeline has reached more than ₹44,250 crore, signaling significant growth in tourism infrastructure development. According to the UP Tourism department, the annual hotel building plan approvals increased substantially from 205 in FY24 to 421 in FY26, with 299 approvals recorded in FY25. Fresh proposals were also received during the first six months of FY27, indicating continued momentum in the sector. The investment pipeline represents a substantial increase in tourism infrastructure development across the state.
Several hospitality companies have submitted significant investment proposals across key UP cities. Mahindra Holidays has proposed an investment of ₹500 crore in Varanasi and Ayodhya, while Imagica World Entertainment will invest ₹400 crore in Greater Noida. Tuxal Theatre has proposed to invest ₹295 crore in Varanasi, and Rajdeep Infra and Sales will invest ₹200 crore in Lucknow. Additionally, ITC Hotels has proposed an investment of almost ₹400 crore in Lucknow.
The state government has approved maps and building plans for nearly 1,000 new hotels over the last three years, with the property count rising incrementally in successive financial years. UP Tourism and Culture Minister Jaiveer Singh attributed the growth to better law and order and remarkable improvement in tourism infrastructure, which is boosting tourist inflow. The government is particularly focusing on promoting medical tourism in Lucknow and other cities, building on the success of faith and heritage tourism in Ayodhya, Varanasi, and Mathura. Minister Singh has directed that the state's 14 tourism circuits should be promoted through social media platforms and roadshows to enhance tourism accessibility.
UP's tourism sector has experienced remarkable growth, with the inflow of domestic and international tourists more than doubling from 640 million in 2024 to 1.56 billion in 2025. According to the UP Tourism department, the state now ranks first and fourth in terms of domestic and international tourist inflow, respectively. The state government is targeting to increase UP's contribution of tourism-based gross value added (GVA) from the current 9.2 per cent to 16 per cent by 2047. Additionally, Minister Singh has ordered the expediting of the installation of artificial intelligence (AI) cameras at tourism hotspots to enhance security and visitor experience.
