India Lodging/Hotels: The Minibar Memo

Research evidence excerpt

India Lodging/Hotels: The Minibar Memo

Macquarie Equity Research India Lodging/Hotels: The Minibar Memo

• Hill States and Gulf guests fuel tourism dreams. Uttarakhand is attracting major hotel

investments across leisure destinations, while Kerala targets 300,000 Arab tourists and aims

to build a Rs250bn tourism economy through global outreach.

Þ Our perspective: The two developments highlight how Indian states are increasingly

pursuing differentiated tourism growth strategies. Uttarakhand is benefiting from rising

domestic leisure demand, with leading hotel brands expanding across destinations

such as Dehradun, Rishikesh and Mussoorie, reinforcing the industry's shift towards

experiential and nature-led travel. Simultaneously, Kerala has budgeted Rs3.25bn for

its tourism sector and is targeting 300,000 visitors from Arab countries as part of its

ambition to create a Rs250bn tourism economy.

Þ Earlier, Tamil Nadu government signed 127 tourism MoUs worth over Rs227bn with

private investors, Odisha had approved 55 hotels with a Rs32bn investment and

Himachal Pradesh announced a Rs310m annual incentive to support flights. Other

states like UP, MP, AP and Telangana have also shown renewed focus towards promoting

tourism and attracting hotel investments. This could be part of the "challenge mode"

encouragement provided to states in the 2025-2026 Union Budget, to come up with

proactive plans to get central funding.

• Step out from Adani airports, into Adani hotels. Adani Airport Holdings partnered with

IHG Hotels & Resorts to develop five hotels with nearly 1,500 rooms across airport-linked

destinations, marking Adani's formal entry into hospitality.

Þ Our perspective: This deal underscores the growing convergence of aviation

infrastructure and hospitality in India.