Industry Odisha Bureau, Oct 18: Wealthy Indian business families have committed nearly ₹2,000 crore to pilgrimage hotels. Major operators, including IHCL and ITC Hotels, are joining them. Branded hospitality is spreading across India’s religious destinations.
Indian family offices are pouring capital into hospitality assets near major pilgrimage centres. Commitments have reached nearly ₹2,000 crore in 12 to 18 months, says Noesis Hotel Advisors. The figure reflects pledged capital, not money already spent. Deoghar, Mathura, Saurashtra, Udupi, Salasar Balaji and Khatu Shyamji are among the destinations drawing interest. Major hotel chains are following the money.
In Udupi, a Mumbai family office has bought a nearly completed upscale hotel. The 137-room property is set to run under a premium Indian Hotels Company (IHCL) brand. Rajasthan’s Salasar Balaji and Khatu Shyamji have also drawn projects.
Mahendra Kabra, managing director of RR Kabel, visits Salasar Balaji every year. He preferred backing a hotel over building a dharamshala. A family office is developing the 108-room hotel, which Sarovar Hotels will manage.
ITC Hotels has signed a 145-room Welcomhotel project near the same temple. It is planned on a six-acre site. In Khatu Shyamji, Royal Orchid Hotels has signed a 120-room hotel with the Agarwal family. The site lies about 2 km from the temple. Neither signed project is operational yet.
IHCL, ITC Hotels, Sarovar, Royal Orchid and Radisson are expanding across religious markets. Such towns have long relied on dharamshalas and independent lodges. Branded hotels offer standardised rooms, trained staff and consistent service. They are likely to coexist with cheaper options, since affordability still matters to pilgrims.
A Mumbai family office representative said city hotels rise and fall with corporate cycles. Pilgrimage hotels, the representative added, attract guests in strong and weak years. Ajay Bakaya, chairman of Sarovar Hotels, called faith a dependable demand driver. He said occupancy is strong, especially at mid-tier hotels of 80 to 100 rooms. Seasonality and rising costs can still squeeze earnings, however.
A Noesis infographic puts faith-led travel at over 60% of domestic tourism. That is an industry estimate, and not every pilgrim books a hotel room.
Much of the capital comes from regional trading, industrial and real estate families. They hail from Rajasthan, Madhya Pradesh, Uttar Pradesh, Karnataka and Andhra Pradesh. Per Noesis, midscale hotels start at ₹60 crore; upscale assets need ₹150 crore-plus.
Nandivardhan Jain, founder and chief executive of Noesis, advised on some of these deals. He said these families have seen local pilgrim numbers double within a decade. He cited patient capital, family-owned land and local knowledge as key strengths. Patient capital refers to investors willing to wait years for returns.
New roads, airports, expressways and temple corridors are also improving access. Noesis also flags events such as Simhastha 2028. Easier travel can turn day trips into overnight stays. Yet faster roads can equally encourage same-day return journeys.
Jain cautioned that demand and land alone cannot ensure a viable hotel. “A temple is not a feasibility study,” he said. Investors must still test room rates, costs, financing, competition and seasonality.
Temple towns offer hotel chains fresh demand and limited branded supply. Investment returns, however, will rest on realistic forecasts and disciplined execution.
