Indian Luxury Hotel Market Size Likely to Surpass at a CAGR of 8.1% By 2033

Indian Luxury Hotel Market size was valued at USD 32.4 Billion in 2023 and is expected to reach USD 62.2 Billion by 2032, at a CAGR of 8.1% during the forecast period 2023 – 2032.

Indian Luxury Hotel Market: Overview

A luxury hotel is a high-end accommodation facility that surpasses conventional standards, offering a premium and opulent experience to guests. Characterized by exceptional service, sophisticated design, and lavish amenities.

The luxury hotel market in India is witnessing dynamic trends reflecting changing consumer preferences and industry dynamics. Customized experiences tailored to individual tastes, wellness offerings, and sustainability practices have become prominent.

The integration of technology, such as contactless check-ins and smart room features, aligns with modern expectations. Unique collaborations between luxury hotel chains and local businesses enhance the cultural and culinary experiences offered to guests.

The rise of experiential travel has led to an emphasis on curated activities, including local tours and authentic cultural engagements.

Additionally, eco-friendly initiatives, from sustainable architecture to responsible sourcing of materials, are gaining importance, reflecting a growing consciousness towards environmental impact. As India’s economy continues to grow, the luxury hotel market is evolving to meet the diverse demands of both domestic and international luxury travelers.

By type, the business hotels segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period 2024-2032. Current trends in Indian luxury business hotels emphasize technology integration for seamless experiences, eco-friendly practices, and flexible workspaces to cater to the evolving needs of business travelers.

By category, chain operated hotels segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period 2024-2032. In the Indian luxury hotel market, key trends in chain-operated hotels include a focus on sustainable practices, integration of advanced technology for enhanced guest experiences, curated wellness offerings, and personalized services. These trends reflect evolving consumer preferences and contribute to the growth and competitiveness of luxury hotel chains in India.

South India burgeoning luxury hotel market is propelled by a fusion of cultural richness and burgeoning business hubs. The rise of experiential travel, demand for sustainable and wellness-focused offerings, and a growing affluent middle class further drive the demand for upscale accommodations.

The region’s historical landmarks, IT-driven corporate travel, and a growing affluent demographic contribute to the demand for upscale hospitality experiences, shaping key trends in the luxury hotel market.

Report Scope

Custom Market Insights has comprehensively analyzed India luxury hotel market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict depth scenarios of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of this Indian luxury hotel industry.

The competitive landscape includes key innovators, after market service providers, market giants as well as niche players are studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, this report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships.

List of the prominent players in the Indian Luxury Hotel Market:

• OYO
• Lemon Tree Hotel
• Treebo
• Hyatt Hotels Corporation
• InterContinental Hotel Groups
• Marriott International
• Radisson Blue Hotels
• Shangri La Hotels & Resorts
• Taj Hotels Resorts & Places
• The Lalit Hotels
• The Leela Palace
• The Oberoi Group
• The Park Hotels
• Bharat Hotels Limited
• Hotel Leela Venture Limited
• ITC Hotels Limited
• The Indian Hotels Company Limited
• Sarovar Hotels Private Limited
• Marriott Hotels India Private Limited
• Rosewood Hotels & Resorts
• Others

Marriott International aims to expand its India portfolio to 250 hotels by 2025, with plans to open over 100 properties in at least ten new cities, according to CNBC-TV18. The hotel chain currently operates 140 hotels across the country.

The Indian Luxury Hotel Market is segmented as follows:

By Type

• Business Hotels
• Airport Hotels
• Suite Hotels
• Resorts
• Others

By Category

• Chain
• Independent