India’s hospitality industry demonstrated remarkable momentum in Q1 2025, with RevPAR (Revenue Per Available Room) surging 16.3% compared to the same period last year. The sector’s strong performance continued sequentially, with an 8% RevPAR increase from Q4 2024 across pan-India markets.
Investor confidence remains high, evidenced by 79 new hotel signings totaling 9,478 keys during this three-month period, signaling sustained expansion in India’s accommodation landscape.
Bengaluru tops performance charts
Bengaluru emerged as the standout performer with an impressive 38.3% year-on-year RevPAR growth, primarily driven by the Aero India 2025 event, which boosted both occupancy rates and average daily rates. Delhi and Mumbai followed with strong RevPAR growth of 26.2% and 21.3% respectively, supported by robust occupancy levels.
Chennai’s hospitality market showed notable performance with 18.7% RevPAR growth, attributed to increased corporate travel, the Annual Leather Fair, and the USICON event held at Chennai Trade Centre. Hyderabad also posted solid results with 15.1% RevPAR growth despite a slight occupancy decline, demonstrating strength in rate growth.
Development pipeline and investments remain strong
The development pipeline remained vigorous with 31 new branded hotels (3,253 keys) opening during Q1 2025. More impressively, the quarter saw 79 new hotel signings representing 9,478 keys, indicating continued investor confidence in the sector.
According to JLL, India’s hospitality sector is on track to attract USD 1 billion in investments by 2028, a substantial increase from the USD 340 million in hotel transactions recorded last year.
Key transactions and strategic partnerships
Q1 2025 already witnessed notable transaction activity, including Chalet Hotels Limited’s acquisition of The Westin Resort & Spa, Rishikesh (141 keys) for approximately ₹530 crores.
Strategic partnerships also shaped the quarter, highlighted by Hilton’s agreement with NILE Hospitality to introduce 75 Hampton brand hotels across India, with the first properties scheduled to open in Gujarat, Rajasthan, Punjab, and Bihar by 2026.
Outlook remains optimistic
“India’s hospitality sector continues to demonstrate exceptional resilience and growth potential, with Q1 2025 showing remarkable RevPAR growth across major markets, particularly Bengaluru’s impressive 38.3% increase. The robust pipeline of 79 new hotel signings representing 9,478 keys this quarter reflects strong investor confidence in India’s hospitality fundamentals. With JLL projecting USD 1 billion in investments by 2028, we are witnessing a transformation in the market that balances immediate performance gains with strategic long-term positioning across all tiers and segments,” stated Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
