Temple run: hotel chains chase footfalls over big profits in pilgrim centres
Temple towns are increasingly making their mark on India’s hotel map, with the rush to add rooms driven by an unusual business case: high footfalls but not necessarily premium rates or big profits.
Companies across the board say it is about brand visibility as much as it is about earnings in these locations. From bigwigs like Radisson Hotel Group and Wyndham Hotels & Resorts to mid-market chains Tamara Leisure Experiences, Alivaa Hotels & Resorts and others like WorldHotels and Summit Hotels & Resorts, hospitality ventures are expanding in destinations such as Puri, Ujjain, Ayodhya, Vrindavan, Tirupati and Katra.
They are betting that strong demand for domestic travel and better connectivity will support branded accommodation in temple and spiritual towns. Vikramjit Singh, chairman and managing director of Alivaa Hotels & Resorts, said the opportunity in a typical mid-market pilgrim town is mainly for travellers who stay for one night and want clean and functional rooms more than an elaborate hotel experience.
“This keeps room rates in check but even so, occupancy is healthy. For a relatively new hotel brand, however, a property in a well-known religious destination can act like a ‘free billboard,’ putting it in front of travellers searching for accommodation,” Singh said.
Alivaa has properties in Rishikesh, Haridwar, Amritsar and near the Mehandipur Balaji temple in Rajasthan. Singh said these hotels break even without generating exceptional returns.
Horwath HTL’s India Hotel Market Review 2025 estimated occupancy of 60-65% in pure-play pilgrim markets and puts the room pipeline in such destinations at 19,500. It said religious travel is relatively resilient, while destinations that combine pilgrimage with leisure, weddings and meetings can support higher-end hotels and longer stays. Hotels in Tirupati reach occupancy in the 70s when meetings and weddings add to pilgrim demand.
Emerging destinations
Radisson has a presence in Shirdi, Puri, Varanasi, Vrindavan, Ayodhya, Prayagraj, Amritsar and Indore and is evaluating opportunities in Tirupati, Mathura-Vrindavan, Kadapa and Ujjain. In October, it signed five hotels, adding 600 rooms including in Bhubaneswar, Puri and Ujjain.
Nikhil Sharma, managing director and chief operating officer for South Asia for the group, said opportunities extend beyond established pilgrimage centres as well as emerging religious destinations.
The push into pilgrim destinations is also drawing other large hospitality groups, with Ayodhya emerging as a key market. Indian Hotels Co Ltd (IHCL) has signed multiple properties in the city, including a 100-room Vivanta and a Ginger hotel, alongside a separate Taj project.
IHCL has been strengthening its presence in Rishikesh, Haridwar, Vrindavan, Prayagraj and Varanasi, while ITC has announced hotels in Bodh Gaya, Shirdi and Vrindavan. The projects span luxury, upscale and mid-market formats.
ITC Hotels has signed a 143-room Welcomhotel, while The Leela is developing a 100-room luxury hotel on the banks of the Sarayu River, near the Ram Janmabhoomi temple, scheduled to open in 2028.
Wyndham signed more than 1,100 rooms in spiritual destinations in 2025 and year-to-date 2026. In October, it opened properties in Ayodhya and Vrindavan, and has one in Bodh Gaya, which opened in December 2025. It has signed a 100-room property in Vrindavan, scheduled to open in 2029, and a 304-room luxury resort in Nathdwara planned for 2030, said Rahool Macarius, market managing director at Eurasia Wyndham Hotels & Resorts.
Tamara is taking a more pilgrim-focused approach. It launched a new brand, Raé by Tamara, in 2026, designed to cater to pilgrims and faith-based travellers. Its first phase includes existing properties in Guruvayur and Kumbakonam, an upcoming hotel in Velankanni and asset-light projects in Tirupati, Palani and Tiruvannamalai. The company is targeting 25 properties signed or operational by 2030 and is looking at Bodh Gaya through its wider portfolio.
Market size
Religious travel accounts for almost half of India’s domestic overnight trips, underlining the size of the market that hotel companies are looking to tap. A survey by the ministry of statistics and programme implementation for July 2025-June 2026 found that 48% of overnight trips were undertaken for pilgrimage and religious purposes.
“Over 50% of domestic travel in India still happens in the faith category and over 50% of faith travellers are senior citizens,” said Samir MC, chief executive officer of Tamara. “There is a need for hotels to look at it differently.”
He added that this brand is designed around the specific needs of pilgrims, many of whom are elderly and begin their pilgrim visits in the early hours. The hotels incorporate features such as grab bars, raised toilet seats and improved bathroom lighting, along with early-morning food service.
The company is introducing shrine naturalists to help guests understand local religious traditions, meditation spaces and food offerings tailored to the practices of each destination.