Indian high end hotel development soars with US$5.8 billion in the kitty

Pictured: Noor-Us-Sabah Palace - The Unbound Collection by Hyatt. Imagery courtesy of Hyatt Hotels Corporation.
India’s upper segment hotel market is continuing its momentum with at least US$5.8 billion of projects in the pipeline, according to the latest THP data.

Our records show that a minimum of 234 sites are currently underway, encompassing more than 40,000 keys.

Annual increase

When we last looked at the Indian industry 12 months ago, the numbers were 177 projects of 26,884 rooms collectively.

Therefore this year’s figures represent a 32% uplift in pipeline properties and a significant 51% rise in key count.

City hubs

Geographically, the data suggests that Bengaluru, the capital of southern Indian state Karnataka, is leading the pack with at least 12 high end hotel projects.

At the opposite end of the country, Amritsar in the northern state of Punjab, is close behind on a minimum of 11 sites. The west coast financial centre of Mumbai rounds out the podium on nine.

Greenfield grandeur

The overwhelming majority of upper segment hotel projects in India are newbuilds, comprising 89% of the pipeline – totalling 226 properties. This is in comparison to just 23 refurbishments and six conversions.

Star ratings are very even, with 131 upcoming upscale sites as against 124 luxury hotels, a 52/48% split.

Timeframe trends

2024 is the current apex for Indian deliveries, with a third of high end hotels expected to complete next year, that’s 86 sites. Deliveries will remain rather buoyant in 2025, with 55 due, and 2026 will see at least another 35. 27 more will arrive before the end of this year, while the remaining 52 are either slated for further in the future or have yet to be designated a delivery date.

This timescale is reflected in the current project phase totals, with 115 sites/45% of the pipeline under construction, plus 42 in pre-opening. Meanwhile, 60 hotels are in pre-planning, 34 in pre-planning and four in a vision stage.

Homegrown success

National group, The Indian Hotels Company Ltd (IHCL), is heading the pile in the upper segments, with at least 50 of these projects underway. Not too far behind is Radisson Hotel Group’s 44 planned Indian sites, while Marriott International has a minimum of 32 builds in progress.

Individual IHCL lines also top the standings in the brand stakes, with Vivanta by Taj on at least 23 , and Taj on a minimum of 17 forthcoming hotels. Radisson’s Park Inn by Radisson takes third place with 13 ongoing projects, at worst.

Notable projects

One of the largest IHCL projects on the books is the 450-key Vivanta by Taj Kempegowda International Airport, Bengaluru, scheduled for 2025. The proposed hotel will be strategically located in close proximity to a concert arena under development, and will be part of the sustainable Airport City being developed by Bengaluru Airport City Ltd.

Elsewhere, a grandiose forthcoming hotel is Hyatt Hotels Corporation’s national debut of The Unbound Collection by Hyatt brand with the renovation of an iconic palace in Bhopal, Noor-Us-Sabah Palace is one of the city’s oldest and most sought-after properties, and will reopen as a 60-room heritage hotel in Q2 2025 following extensive refurbishment.