India’s Hospitality sector posts 12.9% RevPAR growth in Q2 2025: Report

Activity over the last quarter has also been exceptionally strong with over 100 hotels, 13,400 keys signed- investor confidence in India’s hospitality sector
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India’s hospitality sector recorded a 12.9 per cent year-on-year (y-o-y) rise in revenue per available room (RevPAR) in Q225, with sequential growth of 10 per cent, according to JLL Report. Bengaluru led the performance with a 29.4 per cent RevPAR surge, aided by rate optimisation.

Hyderabad saw an 18.6 per cent rise in average daily rate. Chennai, Delhi, and Mumbai showed steady growth. “The hospitality industry in Chennai witnessed strong growth in Q2 2025, with 17.1 per cent year-on-year increase in Revenue per Room, according to real estate consulting firm JLL. The city delivered a strong increase in occupancy rate with a 5.2 percentage point rise while average daily rate increased by 11.2 per cent year-on-year. The improved performance was attributed to the summer travel demand, government activities, and sustained corporate engagement. Meanwhile, TN saw 461 hotels signed in the same period”

Investor confidence remained strong with 106 hotel signings adding 13,398 keys. 

Activity over the last quarter has also been exceptionally strong with over 100 hotels, 13,400 keys signed- investor confidence in India’s hospitality sector. We continue to see consolidation across the sector, with a clear push towards efficiency and scale. Numerous partnerships have been announced with the country’s top brands with much of this activity concentrated in the midscale segment and emerging markets. Overall, the industry is very well placed to drive further growth, said Roopa George, Senior Vice President, Hotels and Hospitality Group, India, JLL.

(With inputs from Chennai bureau)

Published on August 26, 2025