According to JLL, India’s hospitality industry experienced strong growth during the first quarter 2025. Revenue per available room (RevPAR), the sector’s revenue generated by each hotel room, was up 16.3% on an annual basis and 8% compared to the previous quarter.
In the first quarter of 2016, 79 new hotels with over 9,500 keys were opened. 31 new hotels under branded names also opened, totaling more than 3,200 rooms.
Bengaluru’s RevPAR grew by 38.3% in the January-March period, due to higher occupancy and daily average rates as a result the Aero India 2025 festival. Delhi and Mumbai recorded both a 20% increase in RevPAR.
The real estate company says that the quarter marks a sustained increase in investment in India, as investor confidence is on the rise. JLL estimates the hotel sector in India will likely attract $1 billion worth of investment by 2028. That’s up from $340 millions in hotel deals last year.
Jaideep Dang is the managing director of JLL’s Hotels and Hospitality Group India.
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 is booming. Marriott International announced last month its first direct investment into the Indian hotel industry with a “small investment” in management for hotel.
