Hotel Rates Hold Firm Amid June Slowdown

Operators showed pricing discipline even during short-term demand dips

- Varuni Khosla

India's hotel industry weathered a typically soft June and aviation disruptions—such as the Air India mishap in Ahmedabad—without major setbacks, as strong pricing in key cities and solid performance in May provided a cushion. While occupancy dipped slightly, operators resisted slashing rates, indicating a growing pricing discipline, according to hospitality consultancy HVS Anarock.

May 2025 saw India's top hotels perform strongly compared to the same period last year, with average room rates holding firm between ₹7,300 and ₹7,500. Despite disruptions due to the Pahalgam terror attack in April, rates remained resilient, even as occupancy declined 1-3% year-on-year and 7-9% from April, says hospitality consultancy HVS Anarock.