India's Hotel Industry Reports 12.9% RevPAR Growth

India’s hotel industry maintained strong momentum in Q2 2025, recording a 12.9 percent year-on-year growth in Revenue per Available Room (RevPAR) and a 10 percent sequential increase over Q1.

The robust performance reflects a combination of steady demand recovery, improved occupancy, and effective rate management across major markets. Bengaluru led the sector with an exceptional 29.4 percent YoY RevPAR growth, fueled by a dual boost from rising Average Daily Rate (ADR) and occupancy. This performance sets new benchmarks for India’s urban hospitality segment.

Key Highlights

• India’s hotel RevPAR grew 12.9 percent YoY in Q2 2025
• Bengaluru saw the highest growth at 29.4 percent RevPAR
• 106 hotel signings added 13,398 keys this quarter

Hyderabad also posted impressive results, with ADR rising 18.6 percent YoY, underscoring its growing corporate activity and investment-driven demand. Other metros, including Chennai, Delhi, and Mumbai, saw consistent growth, supported by summer travel, government events, and corporate movement, reflecting the sector’s broad-based strength.

Investor sentiment remained highly positive, with 106 new hotel signings totaling 13,398 keys during the quarter. This marks a significant surge in development activity, particularly in midscale and emerging segments, showcasing long-term confidence in India’s hospitality landscape.

“The real game changer has been ADR growth—driving double-digit RevPAR across key markets,” said Roopa George, Senior Vice President, Hotels and Hospitality Group, India, JLL. “We’re seeing consolidation and scale-focused partnerships that position the industry for sustained expansion.”

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The sector’s outlook remains strong, with strategic pricing power, diversified demand sources, and rising development pipelines positioning India as one of the fastest-growing hospitality markets in Asia.