Indian Hospitality Sector Sees 16.3% Jump in Revenue Per Available Room in Q1

India's hospitality sector continued robust momentum in the first quarter of 2025, with revenue per available room (RevPAR) growing 16.3% year over year, based on a report published on Friday.

The uptrend also persisted sequentially, with RevPAR in major markets in India growing 8% from the fourth quarter of 2024.

Investor demand is strong, led by 79 new hotel deals capturing 9,478 keys over the three-month period, indicating steady growth in the country's accommodation business, according to the JLL report.

Bengaluru topped the growth table with a remarkable 38.3% year-on-year rise in RevPAR, primarily driven by the 'Aero India 2025' event that inflated both occupancy levels and average daily rates.

Delhi and Mumbai posted good RevPAR increases of 26.2% and 21.3% respectively, supported by strong occupancy rates.

Chennai also did well, posting an 18.7% increase in RevPAR, propelled by an uptick in corporate business and major events such as the Annual Leather Fair and the USICON conference at the Chennai Trade Centre.

In spite of a small fall in occupancy, Hyderabad recorded a good 15.1% RevPAR growth due to stiff rate hikes, the report added.

Jaideep Dang, India Managing Director, JLL's Hotels and Hospitality Group, said, "The robust pipeline of 79 new hotel signings amounting to 9,478 keys this quarter reaffirms the continued investor appetite for India's hospitality sector."

The sector also saw the launch of 31 branded hotels with 3,253 keys in the January-March period. JLL estimates that India's hospitality market is expected to receive $1 billion in investments by 2028, which is a huge increase from last year's hotel transactions of $340 million.

Dang added, “We are observing a market evolution that combines short-term performance improvements with a strategic focus on long-term growth across all segments and tiers.”