How Did India's Hospitality Sector's Revenue Per Available Room Surge 16.3% in Q1?
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Synopsis
India's hospitality sector is on an upward trajectory, experiencing a 16.3% increase in RevPAR in Q1 2025. This growth reflects strong investor interest and successful events, particularly in Bengaluru, Delhi, and Chennai. Discover how this trend is reshaping the industry and the future of accommodation in India.
Key Takeaways
- India's RevPAR increased by 16.3% in Q1 2025.
- Bengaluru led growth with 38.3% RevPAR increase.
- Investor confidence is reflected in 79 new hotel signings.
- Chennai's performance was boosted by corporate travel and major events.
- The sector is expected to attract $1 billion in investments by 2028.
Mumbai, May 30 (NationPress) The hospitality sector in India experienced significant growth in Q1 2025, with RevPAR (revenue per available room) soaring by 16.3 percent compared to the same timeframe last year, according to a report released on Friday.
This upward trend in the hospitality sector persisted sequentially, with an 8 percent increase in RevPAR from Q4 2024 across various markets in India.
Investor enthusiasm remains robust, as evidenced by 79 new hotel signings comprising 9,478 keys over the past three months, indicating ongoing growth in India's accommodation sector, as detailed in the JLL report.
Bengaluru stood out with an exceptional 38.3 percent year-on-year RevPAR increase, largely fueled by the ‘Aero India 2025’ event, which enhanced both occupancy and average daily rates.
Delhi and Mumbai followed closely behind, achieving impressive RevPAR growth of 26.2 percent and 21.3 percent respectively, bolstered by strong occupancy rates.
Chennai's hospitality market also performed admirably with an 18.7 percent growth in RevPAR, driven by a rise in corporate travel, the Annual Leather Fair, and the USICON event at Chennai Trade Centre, as noted in the report.
Hyderabad recorded solid results with a 15.1 percent increase in RevPAR, despite a slight decline in occupancy, showcasing strength in rate growth, according to the report.
“The impressive pipeline of 79 new hotel signings representing 9,478 keys this quarter underscores strong investor confidence in the fundamentals of India's hospitality sector,” remarked Jaideep Dang, Managing Director of the Hotels and Hospitality Group in India at JLL.
The development pipeline remained robust, with 31 new branded hotels (3,253 keys) opening between January and March. JLL predicts that India’s hospitality sector is set to attract $1 billion in investments by 2028, a marked increase from the $340 million in hotel transactions recorded last year.
“We are witnessing a market transformation that balances immediate performance growth with strategic long-term positioning across all tiers and segments,” Dang added.
Point of View
I observe a positive shift in India's hospitality landscape. The impressive growth in RevPAR signifies not only recovery but also a promising outlook for investment and development within the sector. This trend highlights the importance of strategic initiatives to sustain momentum, ensuring that India remains a competitive destination in the global hospitality arena.
NationPress
24/07/2025
Frequently Asked Questions
What does RevPAR stand for?
RevPAR stands for Revenue Per Available Room, a key performance metric in the hospitality industry that measures a hotel's ability to generate revenue.
What factors contributed to the growth in RevPAR?
The growth in RevPAR was driven by major events, increased corporate travel, and strong investor confidence in the hospitality sector.
How many new hotel signings occurred in Q1 2025?
There were 79 new hotel signings comprising 9,478 keys during the first quarter of 2025.
Which city showed the highest RevPAR growth?
Bengaluru showed the highest RevPAR growth at 38.3% year-on-year, largely due to the Aero India 2025 event.
What is the projected investment in India's hospitality sector by 2028?
India's hospitality sector is projected to attract $1 billion in investments by 2028.
