Indiaâs hotel industry recorded strong growth in the first quarter of 2025, according to real estate firm JLL: The sectorâs revenue per available room (RevPAR) was up 16.3% year-on-year and 8% from the previous quarter.
During the quarter, 79 new hotels were signed with nearly 9,500 keys, and 31 new branded hotels opened, accounting for over 3,200 rooms.
Bengaluru alone had a 38.3% year-on-year surge in RevPAR during the January-March quarter, driven by higher occupancy and average daily rates due to the Aero India 2025 event. Delhi and Mumbai both recorded a 20% jump in RevPAR.
Increase in Investments: According to the real estate firm, the quarter signals a sustained growth in the accommodation space in India as investor confidence rises. JLL estimates that the countryâs hotel sector is likely to attract $1 billion in investments by 2028, up from $340 million recorded in hotel transactions last year.
âWe are witnessing a transformation in the market that balances immediate performance gains with strategic long-term positioning across all tiers and segments,â said Jaideep Dang, managing director, Hotels and Hospitality Group India at JLL.
JLL noted that in the first quarter of the year, notable transaction activity has already taken place: Chalet Hotels acquired 141-key The Westin Resort & Spa, Rishikesh for approximately INR 5.3 billion ($62 million).
The investment landscape in the sector is heating up. Last month, Marriott International announced its first direct investment in the Indian hotel sector with a âsmall equity investmentâ in hotel management fir