India's hospitality sector poised for considerable growth in 2025

India's hotel sector expansion is driven by a thriving domestic tourism market, the rise of niche travel segments and a steady revival in inbound tourism

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The year 2024 unfolded as a powerful reminder of the world's dynamic nature, a blend of geo-political shifts, climate extremes, and economic recalibrations. While India's inbound tourism recovery remained slower than expected, the hotel sector performed strongly across all key performance metrics.

The sector closed the year with a nationwide occupancy of 63-65 per cent, average room rates (ARR) ranging between Rs7800-8,000, and revenue per available room (RevPAR) in the range of Rs5,000-5,200, reflecting a 27-29 per cent increase over pre-COVID benchmarks, according to Anarock survey.

Encouraged by this growth, hoteliers accelerated development activity, resulting in a historic high in hotel brand signings, surpassing previous records, with a sharp focus on Tier-2, Tier-3, and emerging leisure markets. The outlook for India's hospitality sector in 2025 is not just optimistic; it's electric. The year kicked off with momentum as Coldplay's sold-out concerts in Mumbai and Ahmedabad drew fans from across the country and abroad, highlighting India's growing prominence on the global live events circuit.