India’s resurging tourism industry is triggering a land acquisition race among hotel developers, especially in high-traffic tourist hubs where prime commercial plots are becoming increasingly scarce. With domestic and international travel bouncing back post-pandemic, hospitality brands are rapidly expanding their footprints across heritage cities, coastal belts, hill stations, and pilgrimage centers. Developers are targeting strategically located commercial land parcels that offer superior visibility, proximity to transport nodes, and zoning flexibility for hotels, resorts, and boutique stays.
Hotspots like Goa, Jaipur, Rishikesh, Udaipur, Kochi, Shimla, and Varanasi are witnessing heightened activity, with developers and hospitality chains competing to lock in land near airports, beaches, heritage zones, and key arterial roads. These plots—particularly corner lots and main road frontages—are being acquired for build-to-own or franchise hotel models, often featuring ground-level retail integration, rooftop lounges, or wellness zones. In some cases, joint ventures with local landowners or tourism authorities are being explored to facilitate faster execution and reduce capital outlay.
Fueling this momentum are state tourism policies, FSI relaxations, and infrastructure projects under the Swadesh Darshan Scheme, PM Gati Shakti, and the UDAN regional connectivity initiative, which are making remote destinations more accessible and commercially viable. Investors view hotel-linked commercial land as a dual-income opportunity, generating returns from both room rentals and associated retail or events business. As experiential and spiritual tourism continues to grow, prime commercial land in tourist hubs is emerging as a highly competitive and high-yield asset class within the broader hospitality-led real estate expansion in India.
