India’s Hotel Reclassification Could Attract More Investors

India's Ministry of Tourism and Culture has announced that it is considering a major policy change, which would classify hotels as infrastructure projects, placing them in the same category as large national assets, such as airports.

If implemented, this change would make it easier for hotel developers to access financing, opening the door to loans with lower interest rates, creating eligibility for government incentives, and providing developers with a more stable regulatory environment when planning new properties.

Tourism Minister Gajendra Singh Shekhawat explained that reclassifying hotels in this way could unlock significant private investment, helping the country add far more hotel rooms and strengthen India's position in the global tourism market.

The timing of this announcement also aligns with the rising investor enthusiasm for India's travel and hospitality sector, as companies seek capital to support expansion amid growing demand for both domestic and international tourism.

For example, Pride Hotels initiated the IPO process by filing its Draft Red Herring Prospectus with the Securities Exchange Board of India in October 2025, aiming to raise about INR 2.6 billion (around $29 million).

More recently, Oyo’s parent company, Prism, announced a new push to capitalize on India's robust IPO environment, marking its biggest step yet toward a long-planned public listing after two failed attempts in previous years.

Photo by Mr Sanoor on Unsplash