New Delhi, Feb. 27 -- For years, India's hospitality growth was anchored in the bustling metros-Delhi, Mumbai and Bengaluru. But a new wave is brewing in smaller cities, where economic shifts and changing travel habits draw record investments.

According to a new report, HVS Anarock HOPE 2025 Special, shared exclusively withMint, over 47,500 hotel rooms were signed across more than 486 properties in 2024-marking a record year for expansion. Notably, 74% of these signings were in tier-II, III and IV cities, up from 65% in 2019.

As economic activity shifts and connectivity improves, hotel chains are aggressively expanding into these cities. Lower development costs and rising demand for branded accommodations make these emerging markets att...