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Uttar Pradesh's hotel projects exceed ₹44,250 crore as tourism surges

Uttar Pradesh’s hotel investment pipeline has risen above ₹44,250 crore, driven by a sharp increase in tourist arrivals and new projects across key cities.

Uttar Pradesh’s hotel sector now boasts an investment pipeline surpassing ₹44,250 crore, reflecting a robust tourism boom. In the last three years, authorities have cleared plans for almost 1,000 new hotels, with FY26 approvals reaching 421, up from 205 in FY24. Companies including Mahindra Holidays (₹500 crore), Imagica World Entertainment (₹400 crore), Tuxal Theatre (₹295 crore), Rajdeep Infra and Sales (₹200 crore) and ITC Hotels (nearly ₹400 crore) have submitted proposals for projects in Varanasi, Ayodhya, Greater Noida and Lucknow.

Tourism and Culture Minister Jaiveer Singh said better security and upgraded facilities are attracting more visitors, and ordered promotion of the state’s 14 tourism circuits via social media and roadshows. The Yogi Adityanath government is also pushing medical tourism, while heritage sites in Ayodhya, Varanasi and Mathura continue to drive visitor growth. The state aims to raise its tourism-related gross value added from 9.2 percent to 16 percent by 2047, with tourist numbers more than doubling from 640 million to 1.56 billion between 2024 and 2025.

Why it matters

The surge in hotel investment signals rapid growth in Uttar Pradesh’s tourism economy and future job creation.

In this story

hotel investment pipelinetourism boomUttar PradeshMahindra HolidaysAI camerasmedical tourismtourist inflowheritage tourismgross value addedinvestment proposals
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