According to the ‘HVS-ANAROCK Hotels & Hospitality Monitor – February 2025’, the year began positively for the Indian hotel sector with a year-on-year occupancy rise of 2-4% in January 2025. Major markets that drove this growth include New Delhi, Bengaluru, and Pune, whereas Hyderabad and Chandigarh saw slight declines.

Hotel Occupancy Graph

India Hotel Sector Performance (January 2025)

• The average room rates (ARR) continued their upward trend, achieving a growth of 10-12% year-on-year, reaching ₹9,100-9,300.
• Revenue per available room (RevPAR) rose by 15-17%, hitting ₹6,006-6,324, reflecting robust demand and pricing power.

Occupancy Trends Across Key Indian Markets (Year-on-Year Growth: January 2025)

• Steady occupancy improvements were noted across major markets, particularly in Mumbai, which retained the highest average room rate exceeding ₹14,000, and witnessed a significant growth of 21-23%. This increase is largely attributed to the influx of visitors for a Coldplay concert.
• Bengaluru and Kolkata reported robust growth, with ARR increasing by 18-20% year-on-year.