India Hospitality Set to Outpace Global Growth: Viceroy

India’s hospitality sector is expected to outpace global growth rates through the end of the decade, fueled by strong domestic travel demand, rising incomes, sustained investment in tourism infrastructure, and the rapid expansion of bleisure and MICE travel, according to Anirudh Reddy, Director, Viceroy Hotels.

He noted that the industry staged a solid recovery in FY2024–25, delivering 7–9 percent revenue growth and improving occupancies across premium and upper-upscale hotels, despite persistent supply constraints in major urban markets.

Globally, hospitality is entering a phase of steady expansion after the post-pandemic rebound.

Key Highlights

• India’s hospitality sector projected to outperform global growth through 2030
• Domestic travel to reach nearly 5 billion trips annually by 2030
• Viceroy Hotels targets 1,000 keys by 2030, boosts premium presence

The World Travel & Tourism Council (WTTC) estimates that travel and tourism will contribute nearly US$15 trillion to global GDP by 2030, while the global hotel industry is projected to grow at a CAGR of 8–9 percent between 2025 and 2030.

India’s outlook appears even stronger. Domestic travel volumes are forecast to reach nearly five billion trips annually by 2030, supported by rising disposable incomes, a growing middle class, improved air and road connectivity, and continued public and private investment in tourism. According to projections from India Brand Equity Foundation (IBEF) and WTTC, hospitality and tourism together could contribute over Rs. 40 trillion to India’s GDP by the mid-2030s.

Reflecting confidence in these long-term fundamentals, Viceroy Hotels recently announced the acquisition of Marriott Executive Apartments Hyderabad, strengthening its presence in the premium and extended-stay segment. Revenue from the asset is expected to begin accruing from Q4, offering near-term earnings visibility.

Also Read: Viceroy Hotels to Acquire Marriott Exec. Apartments Hyderabad

“Looking ahead, India’s hotel revenues are expected to grow at a 15–17 percent CAGR through 2030, nearly twice the projected global growth rate,” he noted.