The hotel industry in India caters to about 1.8 billion domestic travellers and 9-9.5 Million foreign travellers. About 55% of organized hotels in India belong to 3-star or higher categories. Tamil Nadu and Uttar Pradesh account for more than 35% of all domestic tourist visits in India.
The market size of hotel industry in India(including unorganized market) is estimated at $22 billion in 2019, growing at 8.6% till 2025. The share of organized sector is expected to increase from 32% in 2019 to 37% in 2025.
The hotel industry in India is expected to reach a value of INR 1,210.87 billion by the end of 2023, expanding at a compound annual growth rate (CAGR) of about 13% during the 2018-2023 period, however now we have to keep our fingers crossed with the Corona virus pandemic hitting the hotel industry dry and hard. The hospitality sector is expected to grow by 9% to 10% in next 5 years though, taking the long term prospects into question.