What Drove Revenue for the Indian Hotel Industry This Summer?
Photo Credit: Novotel Pune Nagar Road Hotel. Accor
Skift Take
The April-June quarter was marred with geopolitical tensions and the Air India crash. Despite this, the Indian hotel sector's ability to not only remain unaffected by these headwinds but also deliver a double digit revenue growth is the recovery the industry and investors have been waiting for.
The Indian hotel industry reported a 13% year-on-year growth in revenue per available room (RevPAR) during the April-June quarter this year, according to a report by real estate services firm JLL. This was also a 10% increase compared to the last quarter.
Bengaluru was the market leader, reporting a RevPAR growth of 29.4% during the quarter “through strategic rate optimization and dual-engine growth,” it noted. Hyderabad, meanwhile, had a higher pricing power, as it reported 18.6% year-on-year growth in average daily rates (ADRs), driven by increased corporate movement and heightened investment activities.
Chennai, Mumbai, and Delhi also delivered strong RevPAR and ADR performance. These cities, JLL said, were “capitalizing on consistent occupancy improvements driven by summer travel demand, government activities, and sustained corporate engagement.”
Increased Investor Confidence: During the quarter, 106 hotels accounting for nearly 13,400 ke
