new delhi, June 14 -- India's hospitality sector has seen a wave of funding, with companies pouring over Rs.10,000 crore from initial public offerings and internal resources into new properties, acquisitions, and upgrades since 2023. There's more to follow as legacy and emerging hotel management firms prepare for long-term growth in metros to tier II and III cities, say experts. "What we're seeing now is not just expansion - it's a recalibration of the sector," Nikhil Sharma, managing director and COO - South Asia, Radisson Hotel Group, told Mint. Consolidation and capitalisation, he said, are helping companies scale up faster and tap into emerging markets. This inspires confidence in newer entities that want to list. Northeastern chain Hotel Polo Towers, Mint has learnt, is preparing for an initial public offering while Pride Hotels has revived its 2017 listing plan. They follow Schloss Bangalore (which owns The Leela), ITC Hotels, Ventive Hospitality and Brigade Hotels, which have listed or have filed for an IPO in the past year. Mint reported earlier that FMCG conglomerate Dharampal Satyapal group scaled up operations and are looking to deploy Rs.800 crore into buying and building hospitality assets. The Adani Group intends to take over Jaiprakash Associates Ltd via insolvency proceedings. If it goes through, the deal will give Adani six hotel properties across the country. The wave of IPOs and fundraising highlights appetite for public and private investment in travel and tourism. Strategic shifts like leasing and asset-light models reflect a structural change in how the hospitality sector is being developed and scaled up, experts said. The new generation of operators is becoming more flexible and creating opportunities for smaller hotel owners to work with them. Alivaa Hotels, backed by Ananta Capital, is using leases rather than ownership to expand. Araiya Hotels & Resorts, Brij Hotels, Cygnett Hotels and others are following suit, targeting tier II and III cities with flexible, asset-light strategies aimed at tapping India's surging demand for leisure and spiritual travel. Even unlisted companies have sensed the scale of the opportunity. Hoteliers say this interest and further formalisation bodes well as India is the most underpenetrated hotel market with just 200,000 rooms (according to consultant Horwath HTL) and a consuming population of 200 million, which is growing. China has more than 7 million hotel rooms across 93,300 properties, according to media reports. "India has the capacity to add as many as 10 more new chains. In less than one year of our first hotel opening, we now have 12 hotels on board, of which eight are operational," said Vikramjit Singh, founder of Alivaa Hotels. Singh was earlier president of Lemon Tree Hotels. Alivaa aspires to manage 100 hotels in the next five years and will look at acquisitions to achieve the target. Tier-I cities will stay in focus for many companies, but growth in these cities is limited because of fewer greenfield development opportunities. Some larger companies may now look at leisure destinations across India. "India has a strikingly low number of leisure hotels. Despite strong demand, thanks to the booming domestic tourism, supply hasn't kept pace, leading to higher average rates," Mandeep Lamba, president & CEO (South Asia) at hotel consultancy HVS Anarock, told Mint. With greenfield development in tier-I cities becoming tougher due to land and cost constraints, Radisson is focusing on tier II and III cities, especially leisure and spiritual hubs. "Our recent signings in Ujjain, Ayodhya, and Dhanbad reflect this focus on high-potential micro-markets," Sharma of Radisson said....