Indian Hotels Company Ltd (IHCL) and Lemon Tree Hotels added the largest number of keys in the Indian market in CY25, a report by consultancy HVS Anarock shows.
Overall 14,199 branded hotel rooms were added last year, a growth of 5 per cent over 2024. IHCL and Lemon Tree Hotels topped in both — the number of property openings and room addition.
IHCL opened 30 properties in 2025 and added around 3,000 keys. This excludes hotels on-boarded through acquisitions. Lemon Tree Hotels grew its inventory by 1,601 keys with the opening of 21 hotels.
While the overall number of keys added rose 5 per cent, new property addition in the country fell to 176 compared to 200 in 2024.
Supply expansion
Domestic brands led supply expansion accounting for 70 per cent of the new property openings and 57 per cent of keys. International operators, however, focused on larger-format developments with an average hotel size of 117 keys compared to 65 keys for domestic brands, HVS Anarock said.
Accor, Marriott and Radisson were among top five companies adding rooms in 2025. In terms of property openings, the top five list included The Fern Hotels & Resorts, Radisson and Sarovar.
Mumbai, Udaipur, Bengaluru, Gurugram and Goa saw the highest number of hotel room additions last year. In terms of property openings, Dehradun made it to the top five at the expense of Gurugram.
Beyond metros
“We are moving beyond the traditional metro markets because the Indian traveller is now everywhere and our network is expanding to meet them where they are, while maintaining the discipline and consistency that define our brand,” said Neelendra Singh, Managing Director, Lemon Tree Hotels.
Domestic tourism remains the key driver for the Indian hospitality industry and the demand base is getting diversified, too, with support from pilgrimage tours, weddings, concerts and marquee events.
According to HVS Anarock, hotel development activity remained robust in 2025 with brand signings reaching a new high of approximately 64,118 keys across 586 properties. It said not just tier-II and -III, but even tier-IV markets are becoming central to the next phase of growth, supported by improved connectivity, rising local demand and lower development costs.