Indore: With an estimated investment of nearly Rs 2,000 crore, around 2,000 new hotel rooms are set to be added in Indore by the end of 2027 as hospitality players ramp up expansion plans ahead of Simhastha 2028, signalling a major tourism and infrastructure boom in the Indore-Ujjain region.
Religious Tourism Drives Hotel Investments
After Ayodhya, Varanasi and Prayagraj witnessed a surge in hotel investments driven by religious tourism and mega spiritual events, central India is now emerging as the next big hospitality hotspot. National and regional hotel chains are aggressively expanding in Indore and Ujjain, anticipating a massive influx of pilgrims, tourists and business travellers during Simhastha, which is expected to attract nearly 30 crore devotees.
Industry Leaders on Investment Trigger
Industry leaders said the mega religious event has become a key trigger for long-term investments in hotels, branded stays, homestays and tourism infrastructure. “Simhastha is acting as a major investment trigger for the hospitality industry. Several national and regional hotel groups have either announced new projects or accelerated expansion plans in Madhya Pradesh looking at long-term growth in religious tourism, conferences, weddings and corporate travel,” said Sumit Suri, president of Indore Hoteliers Association.
Current Room Inventory and Expansion Plans
Indore currently has a room inventory of around 10,000 across hotels, resorts and serviced accommodations, while Ujjain, the epicentre of Simhastha, is witnessing rapid expansion in hotels, dharamshalas, guest houses and homestay projects to cater to the anticipated surge in footfall. “Indore will play a crucial role because of its airport connectivity and larger hospitality infrastructure. We currently have around 10,000 rooms and by the end of 2027 another 2,000 rooms are expected to be added,” Suri said.
Project Locations and Connectivity
Hospitality projects are coming up across Indore, Super Corridor, Bypass Road and tourism destinations such as Kalakund as hotel operators look to capitalise on growing tourist movement and improving connectivity between Indore and Ujjain. Hotel executives said branded hospitality players are increasingly looking beyond metros and focusing on emerging spiritual tourism destinations with strong infrastructure and connectivity.
“Religious tourism is emerging as a major growth driver for the hospitality industry. Simhastha has significantly increased investor interest in the Indore-Ujjain region,” said Amit Kothari, regional vice-president operations of a leading hospitality chain operating in central India.
Infrastructure Boosts Investor Confidence
Industry experts said ongoing infrastructure projects, including new roads, flyovers and urban development works along the Indore-Ujjain corridor, have further boosted investor confidence. “Ujjain has significantly boosted spiritual tourism in the region, increasing demand for luxury hotels, mid-segment properties and homestays. Several hospitality projects are also being planned along the Indore-Ujjain corridor. Homestays in Indore should also be promoted to strengthen the city’s tourism branding,” said Atul Seth, city planner.
The Madhya Pradesh government is also promoting homestay projects and tourism infrastructure in and around Ujjain to bridge the accommodation gap during the mega event.
