RevPAR Rises 16.3% in Q1 2025; India Eyes $1B Hospitality Boost

India’s hospitality industry witnessed robust growth in early 2025, positioning itself to attract an estimated USD 1 billion in investment by 2028. Compared to last year, hotel transactions saw a surge of USD 340 million.

According to a report by global real estate and investment firm JLL, Revenue Per Available Room (RevPAR) rose by 16.3% during January–March 2025 compared to the same period in 2024.

Investor confidence remained steady, with 79 new hotels signed during this period, boosting the expansion of India’s tourism and accommodation landscape.

Major markets recorded substantial RevPAR growth, led by Bengaluru with a 38.3% increase. Delhi and Mumbai followed with 26.2% and 21.3% growth, respectively. Chennai recorded an 18.7% rise, driven by corporate travel, the Annual Leather Fair, and the USICON event at the Chennai Trade Centre. Hyderabad, despite a slowdown in rate growth, posted a 15.1% increase in RevPAR.

Additionally, 31 new branded hotels comprising 3,253 keys were launched in Q1 2025, reflecting the sector's strong pipeline and long-term strategic expansion.