India will need about 1.9 lakh to 2.1 lakh additional hotel rooms by 2035, according to a CBRE Research report covered by ANI on 22 October 2026 and Hotelier India on 27 October 2026. That translates to roughly 120 to 125 million sq ft of additional hospitality real estate.
The report, titled Beyond Core: A 2035 View of India’s Alternate Sectors – Part I, says the organised sector has about 4.5 lakh rooms today.
Which Hotel Segments Need the Most India Hotel Rooms by 2035?
CBRE estimates the need at about 43,000 upscale rooms, 42,000 midscale rooms and 29,000 luxury rooms, within a development cycle spanning economy to luxury categories.
How Is the Hotel Market Performing Now?
Occupancy was nearly 64% at the end of 2025, and revenue per available room (RevPAR) rose about 11% in 2025 to roughly Rs 5,500. The sector drew about USD 905 million in real estate investment between 2024 and H1 2026. Gateway cities hold about 35% of branded inventory but generate about 50% of sector revenues.
Where Will Growth Come From?
CBRE cites domestic tourism, business travel, rising incomes and infrastructure. Operators are expanding into smaller leisure, cultural and spiritual destinations, using management contracts, franchise partnerships, brownfield acquisitions and rebranding for faster entry with less capital. Investors are favouring platform-level commitments and strategic joint ventures.
Industry Reaction and Expert Commentary
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said India’s hospitality opportunity is becoming increasingly diverse, with focus shifting from adding inventory to creating differentiated assets. Rami Kaushal, Managing Director, Consulting and Valuation Services, CBRE, said domestic tourism is emerging as a structural driver and that premiumisation should support pricing power and ADR growth. CBRE also said the sector has moved from post-pandemic recovery to a more sustained phase of growth.
What Happens Next?
CBRE says the outlook depends on demand trends, asset quality, location and operators’ ability to deliver experiences that suit changing consumer preferences. No hotel-industry body response to the report was found at the time of writing.
Frequently Asked Questions
How many new hotel rooms does India need by 2035?
CBRE estimates 1.9 lakh to 2.1 lakh additional rooms, requiring 120 to 125 million sq ft of real estate.
What is India’s hotel occupancy?
Occupancy was nearly 64% at the end of 2025, with RevPAR up about 11% to roughly Rs 5,500.
Which segment needs the most rooms?
Upscale leads with about 43,000 rooms, followed by midscale at about 42,000 and luxury at about 29,000.
Sources: ANI (22 October 2026) and Hotelier India (27 October 2026), citing CBRE Research.
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