India's hotel industry is fundamentally reshaping its business model.

India's hotel industry is fundamentally reshaping its business model. Budget and mid-scale hotels are now offering amenities far beyond standard rooms, including multiple restaurants, banquet halls, spas, and event spaces. This represents a significant departure from global hotel standards. A new Savills India and Hotelivate report surveying 600 hotels across 150 cities reveals that non-room revenue now contributes up to 60 percent of total business in tier-II and tier-III cities. This trend reflects strong domestic demand for weddings, family gatherings, and group travel experiences. Hotels are increasingly designed around full-service offerings rather than accommodation alone. As long as this demand persists, room rates are unlikely to decline significantly, positioning amenity-rich properties as the competitive standard across India's hospitality sector.