Goa is still going strong, topping hotel room additions as properties see fall in rates

Goa may have lost some of its appeal to cheaper beach destinations of South and South East Asia but it remains a favourite for hotel developers in the country.

According to consultancy Hotelivate’s latest report, Goa saw addition of around 1,700 hotel rooms in FY 2025 – the highest among all destinations in the country. Another 2,900 rooms are in the pipeline, indicating continued developer interest in the coastal state.

The total supply of hotel rooms in India increased by 9.3 per cent in FY 2025 to over 1.96 lakh as developers added 16,754 rooms, Hotelivate’s latest report shows. 

While top markets of Bengaluru, Delhi and Mumbai saw a rise too, Goa’s hotel supply grew at 18.2 per cent – double the national average. While Udaipur saw a higher growth in per cent terms, in absolute terms room addition in Goa was the highest. At the end of FY 2025 Goa’s hotel inventory stood at 10,999 rooms.

A year-round destination

“Goa’s attraction remains high among Indians with many making spontaneous trips. It is now a year-round destination. We will also see more weddings and events happening in the Goa. Developers are clearly looking to tap the opportunity. Land costs here are lower compared to metros and hence we see lot of investment in hotels and real estate,” said Sarabpal Bami, Director of YGH Goa Hotel Pvt Ltd, which is developing a Hyatt hotel in North Goa.

Leading chains are developing hotels and villas catering to various segments and price points. This includes EIH which is building a 170 key hotel near Fort Aguada and Accor which brings a Raffles luxury resort to Goa. IHCL has also signed new deals in recent months increasing its Goa portfolio (operating and under development) to 19.

Last month Ventive Hospitality forayed into Goa acquiring 76 per cent stake in a Hilton resort in Candolim. “This acquisition reflects our strategy of selective expansion into high-barrier-to-entry markets with strong long-term demand,” said Ventive Hospitality Ltd CEO Ranjit Batra.

While new hotel supply has added to customer convenience it has created challenges for owners and operators. Average daily rates (ADR) and occupancies in Goa hotels declined by 3.2 per cent and 2.4 per cent.

On a nationwide basis, however, hospitality sector continued its strong growth.

“Occupancy for the year stood at 68 per cent, the highest in recent memory and comfortably above the pre-pandemic levels. ADR and RevPar (revenue per available room) also saw meaningful year-on-year growth of 4.7 per cent and 5.7 per cent respectively,” Hotelivate said.

Competition from homestays

According to industry executives, hotels in Goa are facing competition from homestays and that is impacting their occupancy. The impact is mostly being felt by properties in North Goa which have seen rate correction while those in South are faring better. 

Competition from other destinations such as Lakshadweep, Thailand and Vietnam is another concern.

The Travel and Tourism Association of Goa complained to chief minister Pramod Sawant in July seeking action against illegal hotels and homestays that are operating without any permissions. Other demands included streamlined taxi services, action against touts and reduction in taxes.

Published on October 5, 2025