The Indian hotel industry showed strong signs of growth in the first three months of 2025, with nearly 80 hotel deals signed and over 30 new hotels opening. It is uncertain how future geopolitical issues might impact this momentum.
India’s hotel sector experienced significant growth in early 2025, according to real estate company JLL. Revenue per available room (RevPAR) increased by 16.3% compared to the previous year and grew 8% from the last quarter.
During this period, 79 new hotels with almost 9,500 rooms were signed, and 31 branded hotels opened, adding more than 3,200 rooms.
Bengaluru saw a 38.3% rise in RevPAR year-on-year during the January-March quarter, mainly because of increased occupancy and room rates during Aero India 2025. Delhi and Mumbai each reported a 20% jump in RevPAR.
Investment in the sector is rising. JLL says the quarter shows growing confidence among investors. They expect India’s hotel industry to draw about $1 billion in investments by 2028, up from $340 million last year.
Jaideep Dang, JLL’s head of Hotels and Hospitality in India, said the market is shifting. It balances short-term profits with long-term plans across all hotel types and segments.
JLL also reported that major deals took place in early 2025. Chalet Hotels bought The Westin Resort & Spa in Rishikesh for around INR 5.3 billion or about $62 million.
The sector is seeing more investment activity. Last month, Marriott International announced its first direct investment in India’s hotel sector through a small stake in a hotel management company.