India’s hospitality industry reported a 16.3 per cent increase in Revenue Per Available Room (RevPAR) in Q1 2025 compared to the same period in 2024, according to JLL. RevPAR also rose 8 per cent from Q4 2024 across India.
During the quarter, 79 hotels with 9,478 keys were signed, indicating continued investor activity. This was in addition to 31 branded hotels comprising 3,253 keys commencing operations.
Bengaluru recorded the highest RevPAR growth at 38.3 per cent, supported by the Aero India 2025 event. Delhi and Mumbai followed with 26.2 per cent and 21.3 per cent growth, respectively. Chennai registered an 18.7 per cent increase, aided by corporate travel and events such as the Annual Leather Fair and USICON. Hyderabad posted 15.1 per cent growth, driven by average daily rate increases despite a slight occupancy decline.
As per the data, Maharashtra recorded the highest number of branded hotel openings with 836 keys, while Karnataka saw the highest number of branded hotel signings with 1,352 keys during the quarter.
The upscale and midscale segments saw the maximum number of openings as well as signings. Data showed that in the quarter, the upscale segment saw 10 branded hotels with 843 keys being opened and 21 hotels with 2,734 keys being signed. The midscale segment saw 12 branded hotels with 934 keys being opened and 29 hotels with 2,821 keys being signed. Upper upscale and luxury followed close behind, with the economy segment lagging, witnessing only one hotel opening and six signings.