India’s hospitality sector posted impressive gains in Q1 2025, with Revenue Per Available Room (RevPAR) surging 16.3% year-on-year and 8% sequentially, according to JLL. Investor optimism fueled the signing of 79 hotels, adding 9,478 keys to the market pipeline.
Bengaluru led the charge with a stellar 38.3% RevPAR growth, driven by the Aero India 2025 event. Delhi and Mumbai followed with 26.2% and 21.3% RevPAR increases, supported by high occupancy rates. Chennai achieved 18.7% growth, bolstered by corporate travel and key events like the Annual Leather Fair, while Hyderabad posted a 15.1% rise, despite a slight dip in occupancy.
Q1 saw 31 branded hotel openings (3,253 keys), alongside major acquisitions like Chalet Hotels’ purchase of The Westin Resort & Spa, Rishikesh, for INR 530 crores. Strategic partnerships also gained traction, including Hilton’s deal with NILE Hospitality to roll out 75 Hampton hotels across India by 2026.
With USD 1 billion in investments projected by 2028, the sector is poised for sustained expansion. “The pipeline’s strength underscores investor confidence in India’s hospitality fundamentals,” said Jaideep Dang, MD, Hotels and Hospitality, JLL.
