Hospitality sector infuses $93 million investment in H12024:JLL report

The hospitality sector of India has witnessed an investment of around $93 million in the first half of the year (January to June 2024).

The report of JLL unveiled that,the listed hotels in our country accounted for 44% of the total transactions volume, followed by owner-operators (30%), and HNIs, family offices and private hotel owners (26%).

In the initial half of 2024, prominent hotel companies dominated the hotel transaction landscape, with the upscale segment accounting for the largest portion of the overall transaction volume at 44%. 

This was succeeded by the mid-scale segment at 31%, the luxury segment at 23%, and the economy segment at 3%. During this period, a total of 19,442 keys were signed, with 83% situated in Tier II and III cities.

In terms of transaction volume, around 72% pertained to operational hotels, while 23% were associated with hotels under construction, and the remainder involved land leases. In the first half of 2024, a total of six hotel transactions were finalized, encompassing operational assets in Tier I and leisure markets, as well as land leases in the airport district designated for greenfield development.

The firm is expecting to end the year with a positive note with a profit of $413 million, a 22% increase from the previous year. The first half of 2024, saw 19,442 keys in terms of branded hotel signings and 6,071 keys in terms of branded hotel openings.

out of the total volume,7 2% were related to operational hotels, 23% involved under construction hotels, and the remaining involved land leases. In the first six months of 2024, six hotel transactions were concluded, ranging from operational assets in Tier I and leisure markets to land leases in the airport district for greenfield development.

Like the first the second half of the year has kickstarted with positive note. the JLL report says, the Tier I markets remain robust, accounting for 78% of the projected transaction volumes, while Tier II and III markets make up the remaining 22%.

Reportedly, in H1 2024, a total of 6,071 keys were added through new hotel openings, with the midscale segment capturing the largest market share (46%), followed by upscale (29%), upper upscale (12%), luxury (8%), and economy (5%) segments.

Managing Director, Hotels and Hospitality Group, India, JLL Jaideep Dang, mentioned that the first half of 2024 has set the stage for a dynamic hotel transactions market, with forecasted volumes reaching $413 million, a 22% increase over 2023. JLL has already facilitated two major transactions in the second half of the year: an operational hotel sale in Mumbai and a premium hotel land sale in Goa.

He also added, the rising investor interest in operating assets and land sales reflects the strong investment landscape, supported by favorable economic conditions, commercial growth, and better air connectivity. This optimism is reinforced by the signing of over 19,440 hotel keys in the first half of 2024.