Summary:

India is emerging as a major player in the Asia Pacific hospitality industry, driven by strong domestic growth and rising outbound tourism to regional hotspots. According to Colliers' May 2025 report, increasing demand in the luxury, lifestyle, and MICE segments - alongside investor interest in experience-driven assets - is supporting premium pricing. Despite a 19% decline in regional investment volumes, India’s valuations remain strong, with its growth trajectory propelled by solid performance.

India’s outbound tourism is significantly boosting hospitality demand in countries like Thailand, Vietnam, and South Korea. Rising incomes and a growing preference for experiential travel are making Indian travellers a consistent, year-round source of demand, pushing up accommodation prices and reshaping regional dynamics. On the domestic front, Tier-II cities are poised to play a pivotal role in future growth. Spiritual tourism is also expanding, with destinations like Ayodhya and Varanasi attracting investment through supportive policies and infrastructure development.

Source: IBEF

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