India’s hospitality sector demonstrated impressive growth between January to March 2025 and is projected to attract USD 1 billion in investments by 2028. This marks a significant increase compared to the USD 340 million in hotel transactions recorded last year, according to a report released on Friday.
The global commercial real estate and investment management firm JLL noted that Revenue Per Available Room (RevPAR) increased by 16.3 percent during the first quarter of this year compared to the same period in 2024.
The sector’s strong momentum continued into the previous quarter as well, with an 8 percent rise in RevPAR from October to December 2024 across India. Investor confidence remains robust, reflected in 79 new hotel signings totaling 9,478 keys during the January-March period, indicating ongoing growth in India’s hospitality market.
“India’s hospitality sector continues to demonstrate exceptional resilience and growth potential, with Q1 2025 showing remarkable RevPAR growth across major markets, particularly Bengaluru’s impressive 38.3 per cent increase. The robust pipeline of 79 new hotel signings representing 9,478 keys this quarter reflects strong investor confidence in India’s hospitality fundamentals,” JLL Managing Director, Hotels and Hospitality Group, India, Jaideep Dang said.
JLL projects that the hospitality industry will attract USD 1 billion in investments by 2028, highlighting a market transformation that balances short-term performance gains with strategic long-term positioning across various tiers and segments.
The report identified Bengaluru as the top performer, experiencing an impressive 38.3 percent year-on-year RevPAR growth, largely driven by the Aero India 2025 event, which boosted both occupancy rates and average daily rates. Delhi and Mumbai followed closely with strong RevPAR growth of 26.2 percent and 21.3 percent, respectively, supported by solid occupancy levels.
Chennai’s hospitality sector also delivered notable results, with an 18.7 percent increase in RevPAR, fueled by rising corporate travel and key events such as the Annual Leather Fair and USICON at the Chennai Trade Centre.
Hyderabad posted a robust 15.1 percent RevPAR growth despite a slight dip in occupancy, reflecting strength in rate increases. The development pipeline remains active, with 31 new branded hotels totaling 3,253 keys opening between January and March 2025, the report added.
Strong performance metrics, key events, and expanding investor confidence are driving the Indian hospitality sector’s robust growth trajectory. Continued development and strategic positioning will likely reinforce India’s standing as a dynamic and attractive destination for hospitality investments in the coming years.
