Indian hospitality sector`s revenue per available room surges 16.3 pc in Q1
India's hospitality industry demonstrated remarkable momentum in Q1 2025, with RevPAR (revenue per available room) surging 16.3 per cent compared to the same period last year, a report showed on Friday.
The hospitality sector's strong performance continued sequentially, with an 8 per cent RevPAR increase from Q4 2024 across pan-India markets.
Investor confidence remains high, evidenced by 79 new hotel signings totalling 9,478 keys during this three-month period, signalling sustained expansion in India's accommodation landscape, according to the JLL report.
Bengaluru emerged as the standout performer with an impressive 38.3 per cent year-on-year RevPAR growth, primarily driven by the ‘Aero India 2025’ event which boosted both occupancy rates and average daily rates.
Delhi and Mumbai followed with strong RevPAR growth of 26.2 per cent and 21.3 per cent respectively, supported by robust occupancy levels.
Chennai's hospitality market showed notable performance with 18.7 per cent RevPAR growth, attributed to increased corporate travel, the Annual Leather Fair, and the USICON event held at Chennai Trade Centre, the report noted.
Hyderabad also posted solid results with 15.1 per cent RevPAR growth despite a slight occupancy decline, demonstrating strength in rate growth, the report noted.
“The robust pipeline of 79 new hotel signings representing 9,478 keys this quarter reflects strong investor confidence in India's hospitality fundamentals,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
The development pipeline remained vigorous with 31 new branded hotels (3,253 keys) opening during the January-March period. According to JLL, India's hospitality sector is on track to attract $1 billion in investments by 2028, a substantial increase from the $340 million in hotel transactions recorded last year.
“We are witnessing a transformation in the market that balances immediate performance gains with strategic long-term positioning across all tiers and segments," Dang added.
