IHCL, Lemon Tree Hotels Topped Room Additions in 2025

Why It Matters

The surge underscores a resilient domestic tourism market and a strategic shift toward tier‑II, III and IV cities, expanding growth opportunities beyond traditional metros. Investors and developers should watch the evolving supply dynamics as they reshape competitive positioning in India’s hospitality landscape.

Key Takeaways

• IHCL added ~3,000 rooms across 30 new properties in 2025
• Lemon Tree opened 21 hotels, adding 1,601 rooms
• Domestic brands supplied 70% of new openings, 57% of keys
• International chains focused on larger hotels, avg 117 keys
• Tier‑IV markets emerging as growth hubs with lower costs

Pulse Analysis

The 2025 data from HVS Anarock highlights a pivotal moment for Indian hospitality, with branded room inventory expanding by 5% to 14,199 units. While the overall count of new properties slipped to 176, the surge in room additions reflects a market that is prioritizing scale over sheer outlet numbers. IHCL’s aggressive rollout of 30 properties and Lemon Tree’s 21‑hotel push illustrate how domestic operators are capitalising on a robust demand base driven by pilgrimage travel, weddings and regional events.

A deeper look reveals a clear segmentation between domestic and international players. Domestic brands contributed 70% of new openings but averaged smaller properties of 65 keys, whereas global chains such as Accor, Marriott and Radisson pursued larger formats, averaging 117 keys per hotel. This divergence signals that international operators are targeting higher‑margin, upscale segments, while Indian chains focus on volume and geographic spread, especially in emerging tier‑II and III markets.

Looking ahead, the expansion into tier‑IV cities is set to reshape the industry’s growth curve. Improved connectivity, lower land costs and rising local purchasing power make these smaller markets attractive for brand signings, which reached a record 64,118 keys across 586 properties in 2025. Stakeholders—from investors to developers—should monitor how this tier‑downward shift influences pricing power, asset valuations, and the competitive landscape, as the Indian hospitality sector moves beyond metros to capture a broader, more diversified traveler base.