Second-generation entrepreneur Tarun Gulati is more excited than ever to be in the hospitality industry. His 30-year-old family-run hotel, Ganga Kinare, in Rishikesh, hosts artis in his private ghats in the morning and evening for guests, who are invited to explore the centuries-old caves. You can also meditate.
“Spiritual tourism is more popular than ever. People want holistic vacations that combine spiritual power and wellness,” says Gulati.
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He has two more facilities and is working hard to make this money. Holy Water at Ganga Kinale is home to Varu, a restaurant with a menu inspired by temples from across India. Oneness He By He Ganga At Kinnare he organizes a 10-minute trek, after which he crosses the Ganges river on a raft and reaches his destination. Both these are also located in Rishikesh.
Gulati, an IIM-Bangalore alumnus, believes spirituality is no longer about visiting temples. “It’s more holistic and experiential,” he says. His expansion plans center around “pristine river areas with religious sites.”
He is not alone in this spiritual tourism quest.
Whether it’s a five-star hotel or a luxury boutique hotel, everyone wants spiritual tourism, or a “prayer cation.”
room raft
According to data compiled by hotel consulting firm Noesis Capital Advisors, mid-sized and luxury hotel companies plan to invest Rs 3,500 crore in the holy city over the next two years, resulting in more than 5,000 new rooms and 25,000 new guest rooms. Employment may increase. Overall, spiritual tourism will be a key driver of revenue growth for the Indian hotel industry, according to credit rating agency ICRA.
According to data provided by the Ministry of Tourism, religious destinations are expected to attract around 1.4 billion tourists in 2022 and generate revenue worth Rs 5.9 billion by 2028.
A report titled ‘Deciphering Real Estate Through the Lens of Spiritual Tourism’ published by CBRE South Asia in March 2024 states that Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka , Bodh Gaya, Guruvayur, Madurai.
According to the report, the reason for the growth is the strengthening of infrastructure in terms of road, air and rail connectivity. The ever-increasing disposable income of Indians and people’s overall desire to travel on their own.
The Ministry of Tourism launched the National Mission for Promotion of Pilgrimage Rejuvenation and Spiritual Heritage (PRASHAD) scheme in 2014-15 to develop and identify pilgrimage sites in India. A total of 76 projects have been confirmed so far, including in northeast India, where hotel expansion is occurring rapidly.
ITC’s Welcome Hotel Gangtok will open in Sikkim in 2026, The Leela Palace Hotels and Resorts will also open in Sikkim in 2026, and Indian Hotels Company Limited (IHCL) last year opened its seventh property in the region, Arunachal Pradesh. We opened the 80-room Vivanta Hotel in Tawang. Last year, the site was just 6.5 kilometers from Tawang Monastery, the country’s largest monastery.
Almost all branded hotels are present in temple towns across India, including Ayodhya where the new Ram temple was inaugurated in January 2024. Hotel chains and brands like ITC, Taj, Radisson, Marriott and Trident, among others, will launch projects in the city in the next few years.
Pilgrim’s Progress
Suma Venkatesh, executive vice president of real estate and development at IHCL, confirmed that the hotel chain’s current strategy is to expand in pilgrimage destinations.
“We have contracts with hotels in Ayodhya, Haridwar, Sarnath, Pushkar, Ujjain, Vrindavan and Dharamshala,” Venkatesh said. IHCL will have three hotels in Ayodhya under the brands Vivanta, Ginger and SeleQtions and two hotels in Haridwar. He recently opened Vivanta and Selection in Katra and Dharamshala respectively, and his second hotel under the brand in both Tirupati and Rishikesh.
“We are planning to open the 90-key Taj Hotel in Puri in the second quarter of this fiscal. This is another addition to our spiritual destinations,” Venkatesh said.
ITC Hotels is also strategically expanding its business. Mementos His Udaipur, which opened last year, is a 15-minute drive from Eklingji Temple and a 40-minute drive from Nathwara Temple. Nightly rates range from 55,000 rupees + tax to 70,000 rupees + tax.
ITC’s month-old property, Storii Solan, is about an hour’s drive from the Bureshwar Mahadev Temple. Storii is ITC’s brand for his 2022 launch of boutique properties. Many, including Storii Rishikesh, which will open by 2026, are located near religious sites.
Speaking of Rishikesh again, Lemon Tree opened a 126-key facility in Rishikesh in April. The luxury Westin Resort & Spa also opened. The extravagant night costs him more than 40,000 rupees in taxes.
Additionally, Madhya Pradesh has announced that it will enter cruise tourism next year, with jetties and jetties spanning 120 km from the Statue of Unity of Adi Shankacharya on the Narmada River to the Statue of Unity in Gujarat. Two airports have already been announced for construction in the state. With Rs 2,000 crore approved for arts and culture-related schemes, the state has identified 20 projects including sound and light shows, museums explaining Vedanta philosophy, rural tourism and overall revitalization of the tourism industry.
along with prayer
amritsar
• 100 Room Grand Mercure by Akoa (2026)
• 215 Room Holiday Inn (2027)
• 147 Rooms Le Méridien (2023)
• 80 Room Ramada Encore by Wyndham (2023)
Rishikesh
• 55-room riverfront property by ITC (2026)
• 132 rooms and suites by LemonTree (2025)
• 35-room Pride Hotel (2023)
• Eldeco Group’s Rs 100 Crore Housing Project
Ujjain
• IHCL’s 130 room project announced (2024)
• Radisson (2024)
Ayodhya
• Park Inn by Radisson (2024) now open
• IHCL, Hilton, Taj, Marriott, Oyo, Lemon Tree, etc. are expected to open in the next 2-3 years.
• Radisson announces second hotel
Guruvayur
• Lilac Hotel by Tamara in Guruvayur (2024)
• Park Inn and Suites by Radisson, Gulyavur (end of 2024).
tirupati
• 100-room Trident, 142 million rupees (2027)
Madikeri, Kodagu District
• 150 Key Welcome Hotel (2024)
northeast
• 150-room Vivanta by IHCL in Guwahati (2026) and Tawang (2024);
• 60-room Welcome Hotel Gangtok (2026)
• Holiday Inn, Guwahati (2027)
• Leela Palace Hotels and Resorts, Sikkim
