Branded hotels across India registered a room occupancy of 67.5 per cent - the highest since FY 2008 and commanded the highest average daily rate (ADR) ever of ₹8,055 in FY 2024, signalling a strong growth for the hospitality sector, consultancy Hotelivate said in a report today.
The growth came on the back of 9.2 per cent increase in room inventory in FY 2024. Over 15,200 rooms were added taking total supply to over 180,000 last year. Growth was witnessed in metros and emerging markets such as Jaipur, Dehradun and Navi Mumbai.
Occupancy rates
"Indian hospitality industry demonstrated robust growth, with major cities reporting significant improvements across key performance metrics. Occupancy rates surged, with Mumbai leading at 79 per cent, followed closely by New Delhi at 78.7 per cent and Hyderabad at 75.1 per cent, approaching pre-pandemic levels. In terms of ADR, Udaipur topped the list with ₹15,093, on account of its strong luxury hotel base. Mumbai clocked an ADR of ₹11,219, driven by a resurgence in corporate travel. Revenue per available room (RevPAR) also saw impressive growth across various cities, with Mumbai again at the forefront, recording a RevPAR of ₹8,683," Hotelivate said in its report
The highest growth in RevPAR was witnessed in the five-star category. RevPAR refers to revenue generated from available rooms whether occupied or not.
Strong growth in leisure travel, meetings and conferences is aiding the hospitality sector. While foreign tourist arrivals remain below pre-pandemic levels, domestic tourism is on an upswing.
"Key markets such as Bengaluru, Mumbai, and Goa are leading this expansion, with 77 per cent of the proposed supply currently in active development. This trend reflects a positive outlook for the industry, fuelled by rising tourism, business travel, and infrastructure improvements. As of March, the overall branded pipeline for the next five years stands at 88,706 keys, regardless of construction status," said Manav Thadani, founder chairman, Hotelivate.