Mumbai, May 30 (PTI) India’s hospitality sector showed strong growth from January to March 2025. A new report predicts the industry will attract USD 1 billion in investments by 2028, up from USD 340 million in hotel deals last year.
During the first quarter, Revenue Per Available Room (RevPAR) increased by 16.3% compared to the same period in 2024, according to JLL. They also reported that the sector kept growing in the last months of 2024, with RevPAR rising by 8 percent in October-December.
Investor confidence stayed high, with 79 new hotels signed during this period. These deals added nearly 9,500 keys and showed ongoing growth in India’s hotel business.
JLL’s managing director of hotels and hospitality, Jaideep Dang, said India’s hotel industry remains strong. He pointed out that RevPAR grew quickly in key markets, especially Bengaluru, where it increased by 38.3 percent. The many hotel deals this quarter show that investors believe in India’s hotel market.
The announcement of USD 1 billion in investment by 2028 highlights a shift in focus from short-term gains to long-term growth. The market is changing fast across all parts of the country and at different price levels.
Highlights show Bengaluru as the top performer. The city saw a 38.3% rise in RevPAR, mainly because of the Aero India 2025 event. This boosted occupancy and room rates.
Delhi and Mumbai also posted strong growth. Their RevPAR increased by 26.2% and 21.3% respectively, thanks to high occupancy.
Chennai’s hotel market grew by 18.7% in RevPAR. This was driven by more business trips, the Annual Leather Fair, and the USICON event at the Chennai Trade Centre.
Hyderabad reported a 15.1% increase in RevPAR. Despite a small drop in occupancy, rates went up, showing strength in pricing.
The report also notes that the number of new branded hotels is growing. During the first quarter, 31 hotels with 3,253 rooms opened across the country.