The year 2025 has begun on a strong note for the Indian hospitality sector, with occupancy rising by 2-4 percentage points year-on-year (y-o-y) in January 2025. The Average Room Rates (ARR) also continued their upward momentum, registering a 10-12 per cent y-o-y growth, reaching ₹9,100-9,300. 

These increases have resulted in RevPARs also increasing by 15-17 per cent, reaching ₹6,006-6,324, reflecting sustained demand and pricing power. These observations were made in the recently published HVS-ANAROCK Hospitality monitor for February 2025. 

The report further points out that January 2025 showed steady occupancy growth across most major markets, led by New Delhi, Bengaluru, and Pune, while Hyderabad and Chandigarh saw minor declines.

The report says that Mumbai continued to command the highest average rate in the country, consistently exceeding ₹14,000, while also recording the strongest y-o-y growth of 21-23 per cent. 

This surge could be attributed to the Coldplay concert drawing in a large crowd from across the country. Similarly as per the report Bengaluru and Kolkata also posted robust growth, with ARR increasing 18-20 per cent y-o-y.

As per the report, January 2025 also showed steady occupancy growth across most major markets, led by New Delhi, Bengaluru, and Pune, while Hyderabad and Chandigarh saw minor declines. 

Mumbai retained its leadership position with the highest occupancy in the range of 82-84 per cent. At the same time, New Delhi and Bengaluru posted the strongest year-on-year occupancy growth, increasing by 6-8 percentage points (pp). In contrast, Hyderabad and Chandigarh experienced declines, with occupancy dropping by 3-5 pp and 1-2 pp, respectively.

During the period, there were a few major announcements with the hospitality business head of DS Group talking about his company’s strategy to increase its presence as asset owners in the Indian hotel sector.