Why Hospitality Assets Are the New Economic Growth Drivers Mr. Sandeep Ahuja, Global CEO, Atmosphere Living

In the ever-changing landscape of today’s global economy, hospitality properties have become high-performance, growth-driving, and resilience-building strategic assets. Previously considered peripheral to main sectors, hotels, resorts, branded residences, and experience properties are now the focal points of investment portfolios, city planning, and national development strategies—particularly in the post-pandemic recovery phase.

World travel and tourism are poised to generate $9.5 trillion in output for the global economy in 2025, nearly 9.2% of international GDP—essentially back to where it was at the peak before the pandemic. This sharp rebound has helped stimulate renewed optimism towards hospitality-driven model investment and redisposed the sector as an imperative driver of jobs and infrastructure, a report issued in March of 2025 by the World Travel & Tourism Council (WTTC) predicts.

In India, the branded residence market is expected to expand by 60% by 2027 with 90 new projects lined up in the pipeline according to a January 2025 report by Noesis Capital Advisors. The segment is expected to double globally by 2031, reflecting a shift in demand towards lifestyle real estate supported by hotel-standard services and international brands.

Additionally, hospitality properties are now being created as part of mixed-use environments that provide long-term sustainability. Metropolises such as Dubai, Singapore, and Mumbai are experiencing a trend of integrated developments where hotels form the foundation of larger urban structures integrating residential, retail, and entertainment areas. This concept is not tourism-focused—it’s about building urban hubs that bring capital and culture.

The investment returns are just as strong. In their peak markets, branded hospitality developments receive 30–70% premiums on non-branded alternatives. According to a report by Finance Middle East in April 2025, Dubai alone is leading the world with more than 140 branded residence schemes, evincing investor demand for hospitality-backed property.

The industry also generates direct and indirect jobs. For every $1 million in hospitality facilities invested, approximately 15–20 jobs are created, covering construction, design, logistics, operations, and services. The chain reaction renders hospitality a vital element of inclusive economic growth. In addition, new hospitality developments are coming in line with ESG objectives—embedding sustainability in operations, digital guest experiences, and renewable energy infrastructure, thus enhancing their attractiveness to institutional investors.

Overall, hospitality assets are no longer rooms and reservations. They are the convergence of real estate, experience, technology, and international mobility. Nations which adopt hospitality-led development are investing in long-term economic resilience—driving tourism, city innovation, employment, and international competitiveness all at once.