India’s Hotel Boom: Surging Room Revenue and Global Investment

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India’s hospitality sector is experiencing unprecedented growth, with Revenue Per Available Room (RevPAR) surging 16.3% in Q1 2025 compared to the same period last year. Investor confidence remains high, with $1 billion in investments expected by 2028, marking a significant increase from $340 million in hotel transactions recorded last year2.

Key Drivers Behind India’s Hospitality Boom:

Strong RevPAR Growth – Bengaluru led the market with a 38.3% year-on-year RevPAR increase, driven by the Aero India 2025 event, while Delhi and Mumbai followed with 26.2% and 21.3% growth, respectively.
Investor Confidence & Expansion – The sector saw 79 new hotel signings, totaling 9,478 keys, reflecting sustained expansion across India.
Luxury & Business Travel Surge – Chennai and Hyderabad posted 18.7% and 15.1% RevPAR growth, fueled by corporate travel and major events.
Global Investment Influx – Major international hotel chains, including Hilton and Marriott, are expanding their footprint in India, capitalizing on the country’s booming tourism and business travel sectors.

Outlook on India’s Hospitality Growth

India’s hotel industry is poised for long-term expansion, with strong investor backing, rising occupancy rates, and increasing demand for premium accommodations. As global travel rebounds, India’s hospitality sector is expected to maintain its upward trajectory, attracting new developments and international partnerships.

Sources: Economic Times, Rediff Money, Outlook Business Hotelier India and Skift.