Bengaluru Champions Hospitality Growth with 29.4% Surge

Overview of India’s Hospitality Growth

India’s hospitality sector has experienced a remarkable year-on-year growth of 12.9% in Revenue per Available Room (RevPAR) during the second quarter of 2025. Leading the charge, Bengaluru has recorded an impressive increase of 29.4% in RevPAR, according to the latest Hotel Momentum India report released by JLL.

Key Highlights from the Report

The growth in India’s hospitality sector extends beyond mere numbers. In addition to Bengaluru’s towering performance, other metropolitan areas like Hyderabad have also shown strength, with an 18.6% rise in Average Daily Rate (ADR). Meanwhile, cities such as Chennai, Delhi, and Mumbai have maintained steady growth based on occupancy, demonstrating resilience across corporate and leisure segments.

Investment and Development Activity

Q2 of 2025 marked a robust period for investments in the hospitality sector, with a total of 106 hotel signings translating to 13,398 keys. This demonstrates a strong confidence among investors regarding India’s long-term hospitality potential.

Factors Contributing to Growth

• Corporate Demand: An increase in corporate travel and investment activity has invigorated hotel occupancy and rates.
• Government Initiatives: Government strategies aimed at boosting tourism have played a pivotal role in stabilizing and enhancing the hospitality landscape.
• Leisure Travel: The rise in leisure travel, especially during the summer, has ensured steady demand in key markets.

Insights from Industry Experts

Roopa George, Senior Vice President of the Hotels and Hospitality Group at JLL, noted that the industry has observed unprecedented growth recently. The combination of a healthy investment climate and solid demand fundamentals has cultivated a remarkably positive sentiment among investors. As occupancy levels reach stability, advancements in ADR have become instrumental in driving double-digit RevPAR growth. Furthermore, considerable activity in the midscale hotels segment highlights a strategic shift toward value and efficiency.

Long-Term Prospects for Hospitality

The report indicates that corporate travel trends, government initiatives, and evolving leisure preferences will shape the recovery trajectory of India’s hospitality sector. Investors remain enthusiastic about the market’s potential for future expansion, suggesting that the hospitality industry is well poised to grow.

A Historical Perspective on India’s Hospitality Sector

To understand the current landscape of India’s hospitality industry, it is important to trace its historical roots. The evolution of hospitality in India has been marked by significant transformations, often influenced by socio-economic changes and shifts in consumer behavior.

Historically, the hospitality industry in India has seen phases of rapid growth alongside economic liberalization and increased international tourism. The rise in disposable income among the middle-class population has also played a crucial role, leading to enhanced spending on travel and accommodation.

Future Significance for International Tourism

Looking ahead, the significance of the hospitality sector in India will likely expand, especially with the increased focus on international tourism. With improving infrastructure, more travelers are inclined to explore India’s vast cultural and natural attractions, establishing strong ties between the hospitality industry and tourism growth.

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