Mumbai— India’s hospitality sector saw a strong start to 2025, with revenue per available room (RevPAR) rising 16.3% year-over-year in the first quarter, according to a report released Friday by JLL. The growth underscores the industry’s continued recovery and resilience, buoyed by increasing demand and strategic event-driven activity.
On a sequential basis, RevPAR also climbed 8% from Q4 2024, reflecting sustained momentum across key markets nationwide.
Investor sentiment remained robust, with 79 new hotel signings totaling 9,478 keys recorded during the quarter—an indicator of continued confidence in the long-term fundamentals of India’s hospitality industry.
Bengaluru led the performance charts with a remarkable 38.3% year-over-year RevPAR growth. The spike was largely attributed to heightened demand surrounding the ‘Aero India 2025’ event, which drove both occupancy and average daily rates. Delhi and Mumbai followed with RevPAR gains of 26.2% and 21.3% respectively, supported by strong occupancy rates.
Chennai also saw healthy growth at 18.7%, benefiting from increased corporate travel, the Annual Leather Fair, and the USICON conference held at the Chennai Trade Centre. Hyderabad reported a 15.1% rise in RevPAR, driven primarily by stronger room rates, even as occupancy experienced a slight decline.
Jaideep Dang, Managing Director of JLL’s Hotels and Hospitality Group in India, noted that the robust development pipeline demonstrates investor confidence. “The 79 new hotel signings totaling 9,478 keys this quarter reflect strong belief in India’s hospitality fundamentals,” he said.
During the January–March period, 31 new branded hotels with a combined 3,253 keys opened across the country. JLL projects that India’s hospitality sector is on course to attract $1 billion in investments by 2028, a significant rise from the $340 million in hotel transactions recorded in 2024.
“We are witnessing a transformation in the market that balances immediate performance gains with long-term strategic positioning across all segments,” Dang added. (Source: IANS)
