India’s hotel industry continued its upward trajectory in Q2 2025, registering a 12.9% year-on-year growth in Revenue per Available Room (RevPAR), alongside a 10% sequential rise from Q1. The performance reflects sustained recovery, robust demand, and strategic rate management across key markets.
Bengaluru emerged as the standout performer, achieving a remarkable 29.4% RevPAR growth. This was driven by dual-engine momentum—consistent gains in both Average Daily Rate (ADR) and occupancy—setting new benchmarks for urban hospitality performance.
Hyderabad demonstrated strong pricing power, with ADR rising 18.6% YoY. The city leveraged increased corporate movement and investment activity, signaling a shift toward value-driven revenue strategies.
Chennai, Delhi, and Mumbai maintained steady growth, supported by summer travel, government-led events, and corporate demand. Their consistent performance highlights the sector’s diversified strength across India’s top metros.
Investor sentiment reached new highs, with 106 hotel signings totaling 13,398 keys during the quarter. This surge in development activity underscores long-term confidence in India’s hospitality market, particularly in midscale and emerging segments.
“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.”
