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flag India’s luxury hotel supply lags demand due to land and regulatory hurdles, fueling a growing gap and strong market expansion.

flag Luxury hotel supply in India is expected to remain limited due to land scarcity, strict regulations, zoning restrictions, high costs, and long development times, according to a JM Financial report. flag Despite these challenges, demand is rising rapidly from growing disposable incomes and a shift toward premium travel, driving luxury ADR growth at 5.7% CAGR from FY2014 to FY2024—outpacing the broader sector. flag Demand for luxury rooms is projected to grow at 10.6% CAGR through FY2028, while supply expands only 5.9% annually, creating a gap that could push RevPAR to 1.5 times 2024 levels. flag India’s economy is expanding swiftly, with GDP forecast to reach $6.8 trillion by 2030 and high- and upper-middle-income households rising to 200 million—tripling since 2018. flag The luxury market is expected to grow at 9.2% CAGR from 2023 to 2028, outpacing global averages, positioning India as a key growth market in global luxury hospitality.

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