According to research released on Friday, the hotel sector in India exhibited impressive growth in the first quarter of 2025, with RevPAR (revenue per available room) up 16.3% over the same time the previous year.
Across all Indian markets, the hotel sector’s impressive success persisted, increasing RevPAR by 8% from Q4 2024.
According to the JLL research, investor confidence is still strong, as seen by the 79 new hotel signings that totaled 9,478 keys during this three-month period, indicating continued growth in India’s lodging market.
The “Aero India 2025” event, which increased occupancy rates and average daily rates, was the main driver of Bengaluru’s remarkable 38.3% year-over-year RevPAR rise, making it the outstanding performer.
With excellent RevPAR increase of 26.2% and 21.3%, respectively, Delhi and Mumbai came next, helped by high occupancy rates.
According to the research, the Chennai Trade Centre hosted the USICON event, the Annual Leather Fair, and increasing corporate travel were the main reasons for the outstanding performance of Chennai’s hospitality industry, which had an 18.7% RevPAR gain.
According to the research, Hyderabad also showed strong rate growth, posting respectable results with 15.1% RevPAR rise in spite of a modest fall in occupancy.
According to Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL, “the strong pipeline of 79 new hotel signings representing 9,478 keys this quarter reflects strong investor confidence in India’s hospitality fundamentals.”
With 31 new branded hotels (3,253 keys) opening between January and March, the development pipeline remained active. India’s hospitality industry is expected to draw $1 billion in investments by 2028, according to JLL. This represents a significant rise from the $340 million in hotel transactions that were reported the previous year.
Dang said, “We are seeing a shift in the market that strikes a balance between strategic long-term positioning across all tiers and segments and immediate performance gains.”
