India Reshapes Asia Pacific Travel and Hospitality Landscape

Increases in domestic activity, travel to other countries and investment help India propel growth in Asia Pacific travel and hospitality, even as other markets slow down.

Colliers India’s May 2025 Hospitality Insights report indicates that India is firmly taking its place in Asia Pacific hotels and tourism. Regionally, there was a 19% fall in hospitality investment in Q1 2025, yet India is fueling travel as more tourists stay in India and visit popular spots abroad, especially Thailand, Vietnam and South Korea.

The rising interest in luxury, lifestyle and MICE has helped maintain premium prices in India’s hospitality sector, which is also remaking regional travel trends. It is pointed out by Colliers that demand for industrial real estate is the reason why valuations are maintained.

Puneet Chhatwal, MD & CEO of Indian Hotels Co. Ltd., believes that India could be a top spot for hospitality, yet high taxes and limited marketing funds are setbacks. The finance minister praised the infrastructure in the budget plan for 50 tourist hotspots but urged the government to do more.

Cities including Ayodhya and Tirupati are now seeing more tourism which is raising investment from local sources. Tier II cities are preparing to play a major role in the future expansion of tourism and hospitality.

Since confidence among investors has come back and RevPAR across Asia Pacific is steady, industry leaders predict more deals in the near future. Experts expect India’s hospitality sector to exceed $12.8 billion by 2027 which demonstrates the country’s growing part in the global travel and hospitality industry.