Why luxury hotel brands are hot on India

India-based Postcard Hotel, a boutique hotel famed for its exceptional service, is set to open one of the country’s most expensive hotels next year. Located in Ranthambore, Rajasthan, and targeting discerning travelers, the Postcard Hotel offers rooms starting at Rs. 1.95 lakh per night (approximately $2,350).

International luxury brands are also making their mark. Singapore-based Raffles recently opened in Udaipur, and Waldorf Astoria signed its first property in Jaipur. Additionally, domestic luxury brand Oberoi has announced plans for three new hotels within the country and one in Kathmandu, Nepal.

“These developments highlight the growing interest in luxury tourism and the confidence in India's market potential,” Dang says.

As the ultra-high net worth (HNW) population continues to grow, JLL’s Evolution of Global Luxury Hospitality report predicts a further increase in ultra-luxury hotels worldwide.

In the next ten years, an additional 46,000 ultra-luxury hotel rooms are expected to open globally. The Asia-Pacific region leads the way, driven by markets like Hangzhou and Mumbai. The report identifies India as a must-watch global growth market, considering it is the world’s most populous country.

Luxury hotel development is not limited to popular leisure destinations like Goa. Heritage-rich cities such as Jaipur, Udaipur, and Agra are also experiencing growth. These locations, known for their architectural beauty, cultural significance, and unique wildlife experiences, are now attracting luxury properties.

India's luxury tourism market has seen significant growth thanks in large part to the government's focus on infrastructure development, Dang says.

Improved airport facilities, expanded airports, and enhanced road connectivity have made it more convenient for luxury travelers to access premium destinations in the country. As a result, opportunities for luxury hotels to thrive have emerged not only in leisure destinations but also in heritage-rich cities such as Jaipur, Udaipur, and Agra.

"The combination of improved accessibility, government support, and the emergence of new luxury brands and properties has positioned India as a sought-after luxury destination," says Dang. "With continued focus on infrastructure development and the growing demand for unique experiences, India's ultra luxury sector is poised for sustained growth in the coming years."