India’s hospitality sector witnessed a strong USD 93 million in investment during the first half of 2024, according to JLL's Hotel Investment Trends in India for H1 2024. With the year-end forecasted to close at USD 413 million, this marks a 22% increase from 2023, highlighting the sector's resilient growth trajectory.

According to JLL, operational hotels made up 72% of the total transaction volume, with 23% attributed to under-construction properties, and the remaining 5% involving land leases, particularly for greenfield developments in key airport districts.

The report revealed six major hotel transactions during this period, spread across Tier I and leisure markets. Listed hotel companies dominated the investment landscape, accounting for 44% of the total volume, followed by owner-operators at 30%, and High-Net-Worth Individuals (HNIs), family offices, and private hotel owners contributing 26%.

Jaideep Dang, Managing Director of Hotels and Hospitality Group, India at JLL, commented, “The first half of 2024 has set the stage for a vibrant hotel transactions landscape for the rest of the year. The projected year-end volume of USD 413 million reflects a 22% growth over 2023, illustrating the strength of the sector amid favorable macro-economic conditions, expanding commercial markets, and improved air connectivity.”

Tier I markets such as Mumbai, Hyderabad, Pune, and Chennai led the way, accounting for 78% of the projected transaction volumes. Tier II and III markets followed with 22%, demonstrating increased investor interest in both metro and emerging destinations.

Notably, the first half of 2024 also saw 19,442 hotel keys signed, with a significant 83% located in Tier II and III cities. Management contracts remained the preferred mode of operation, making up 89% of the signings, followed by franchises and lease/revenue share agreements. The number of greenfield projects also surged, with 13,700 keys signed, surpassing the total number of signings in 2023.

As for the Radisson Hotel Group, the company reported robust growth with over 130 new signings and openings globally in H1 2024. Their Radisson Collection, Radisson Blu, and Radisson RED brands spearheaded this expansion, with Radisson RED making its entry into new markets such as Ireland, New Zealand, Thailand, Laos, and China. The brand also debuted in Paris with the signing of the first Radisson Collection near the Louvre Museum, while the Radisson Collection Hotel Roma Antica opened in Rome, near the Pantheon.

Jaideep Dang further noted, "Investor interest in both operational assets and land sales highlights the attractiveness of the current investment environment. The expansion of air connectivity, especially in Tier I cities, is playing a significant role in supporting this growth, as is the continued demand for domestic travel and commercial activity.”

With two major transactions already facilitated by JLL in the second half of 2024, amounting to USD 70 million, the sector is set for an exciting close to the year, further reinforcing confidence in India’s booming hospitality industry.

The Hosteller, India's top backpacker hostel chain, has successfully raised USD 4 million (approximately INR 32 crore) in its Series A funding round. Led by V3 Ventures, with participation from LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC, Thrive Ventures, and several real estate family offices, this investment elevates The Hosteller’s valuation to INR 200 crore (around USD 25 million).

With the fresh capital, The Hosteller aims to accelerate its expansion, planning to grow its footprint to over 150 locations across India within the next 24 to 30 months. The company is focused on strengthening its presence in metro cities while expanding to new travel destinations, offering backpackers immersive and high-quality travel experiences.

Speaking on the funding, Arjun Vaidya, Co-founder of V3 Ventures, expressed confidence in the startup's trajectory, saying, “The Hosteller has firmly established its leadership in the travel space through outstanding execution. We are proud to support the company as it enters its next phase of growth, with plans to expand to over 150 locations.”

Pranav Dangi, Founder and CEO of The Hosteller, highlighted the brand’s commitment to offering unique travel experiences, stating, “Our focus remains on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth. With the launch of Glu, our complete tech concierge, and other initiatives, we are setting new benchmarks in the hospitality sector.”

The company’s CFO, Saksham Khemka, added, “This capital infusion will accelerate our expansion plans while ensuring we maintain the high service standards our guests expect. We’ve seen a 4x growth in locations over the past three years, and we aim to continue this momentum by adding four to five new hostels each month.”

Since its founding in 2014, The Hosteller has become synonymous with affordable, quality lodging and immersive travel experiences. Operating in 60 locations, including major cities and scenic regions like Himachal Pradesh and Karnataka, it is the only backpacker hostel chain with a presence in over 12 Indian states.

For the fiscal year ending March 2024, The Hosteller reported top-line revenue of INR 55 crore with positive net margins. With plans to add 50 more properties by the end of this year, The Hosteller is poised to solidify its position as the largest backpacker hostel chain in South Asia.

Hong Kong is experiencing a strong recovery in tourism, with a notable increase in visitors from India during the first half of 2024. The city welcomed 181,000 Indian tourists, marking a remarkable 155% year-on-year rise. This surge in visitors coincides with Hong Kong's broader tourism boom, which saw 21 million arrivals between January and June 2024.

The Hong Kong Tourism Board (HKTB) recently concluded its annual Hong Kong Travel Mission in India, visiting Mumbai, Chennai, and New Delhi from August 20 to August 23. This mission featured a 36-seller delegation of Hong Kong’s key trade partners, including popular attractions, theme parks, leading hotels, airlines, and cruise lines. They engaged with over 500 Indian trade partners, aiming to strengthen tourism ties between the two regions.

Indian tourists have shown a growing interest in Hong Kong’s diverse attractions, with top choices including Hong Kong Disneyland, Temple Street, Ocean Park, The Peak, and Tsim Sha Tsui. To cater to this interest, the HKTB is promoting a range of year-round events, such as the Hong Kong Wine and Dine Festival, Hong Kong Winterfest, and the highly anticipated New Year Countdown Fireworks.

Puneet Kumar, Director for South Asia and the Middle East at the HKTB, highlighted the board’s dedication to enhancing the travel experience for Indian visitors. He stated, “At Hong Kong Tourism, we are dedicated to enhancing the travel experience for Indian tourists through a variety of engaging programs and events." Kumar also noted that the average stay of Indian tourists has increased from three days in 2018 to 4.5 days in 2024, with an average spending of HKD 9,100 per person.

Hong Kong’s vibrant MICE (Meetings, Incentives, Conferences, and Exhibitions) sector has also seen robust growth, with approximately 700,000 MICE arrivals in the first half of 2024. To further attract MICE visitors, the HKTB launched the "Hong Kong Incentive Playbook" initiative, offering over 100 innovative group experiences designed to inspire and energize corporate teams.

The HKTB’s efforts align with global trends, as several countries, including Singapore, Dubai, Oman, Thailand, and Tajikistan, are actively targeting Indian travelers to boost their tourism industries. By promoting Hong Kong as a year-round destination with seamless travel options, the HKTB aims to attract more Indian tourists, particularly from Gen Z and Millennial segments interested in concerts, festivals, and other vibrant events.

As the HKTB continues to focus on both leisure and business travel, Hong Kong is positioning itself as a preferred destination for Indian tourists, offering unique experiences and easy travel processes. With visa-free entry and direct flights from major Indian cities, Hong Kong is becoming an increasingly accessible and appealing destination for Indian travelers.