India's hotel industry is entering a phase of structural maturity, with plans to add over 70,000 keys by 2030. According to CBRE's India Alternate Sectors Outlook 2026, the market size is expected to grow from $24.6 billion in 2024 to nearly $31 billion by 2029, fueled by a 40% surge in domestic travel, which reached 4.1 billion visits in 2025. Despite challenges from geopolitical tensions and aviation issues, the sector maintained strong performance, with occupancy rates around 64% and revenue per available room (RevPAR) growing by 11%. Investment activity has accelerated, with hotel deal values rising to approximately $456 million in 2025, driven by institutional investors targeting leisure destinations and commercial cities. The shift towards asset-light models and acquisition strategies in tier-II and tier-III cities is expected to enhance growth, supported by favorable policies such as GST rationalization and proposals to upgrade hospitality education. With travel demand holding firm, the hospitality sector is well-positioned for sustained expansion through 2026 and beyond.