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Overview of Growth in Indian Hospitality
The hospitality sector in India has seen a remarkable increase, reaching a 12.9% year-on-year growth in Revenue per Available Room (RevPAR) during the second quarter of 2025. Bengaluru has emerged as a leader in this surge, showcasing a striking 29.4% growth in RevPAR, bolstered by strategic initiatives that optimized pricing and enhanced occupancy rates. The figures detailed in JLL’s latest Hotel Momentum India report highlight positive trends and rising investor confidence in the nation’s hospitality landscape.
Regional Performance Highlights
Bengaluru’s exceptional performance sets a benchmark, followed by Hyderabad which reported an 18.6% growth in Average Daily Rate (ADR). Other major cities like Chennai, Delhi, and Mumbai showed stable growth across various segments driven predominantly by corporate, government, and leisure travelers. This broad-based growth points to a vibrant demand environment across key metropolitan markets.
Key Stats from Q2 2025
| City | RevPAR Growth (Year-on-Year) | ADR Growth (%) |
|---|---|---|
| Bengaluru | 29.4% | — |
| Hyderabad | — | 18.6% |
| Chennai | Stable | — |
| Delhi | Stable | — |
| Mumbai | Stable | — |
Investor Confidence and Development Activity
The hospitality sector has witnessed substantial development momentum during this quarter, with 106 hotel signings resulting in a total of 13,398 keys. This activity underscores a burgeoning confidence among both investors and developers in India’s long-term capacity for hospitality growth.
Much of the investment focus has shifted towards the midscale segment, revealing a trend towards efficiency and scalability. Roopa George, Senior Vice President at JLL, commented on the unprecedented growth and the positive investment sentiment reflecting the sustained recovery momentum in the sector.
Factors Contributing to Recovery
- Corporate Demand: An increase in business travel activities.
- Government Initiatives: Favorable policies enabling growth.
- Leisure Travel Growth: A rising interest in domestic and international leisure options.
Implications for Travel and Taxi Services
The growth in the hospitality sector is expected to have a ripple effect on additional services, particularly taxi and transfer services. As more tourists flock to cities like Bengaluru and Hyderabad, the demand for efficient transport options will likely increase. Utilizing platforms such as LocalsRide.com can enhance the user experience by allowing travelers to book personalized transfers from verified providers, ensuring transparency in fare structure and vehicle selection.
Conclusion
To summarize, the hospitality sector in India is on a steadfast path towards recovery, marked particularly by Bengaluru’s significant contribution. The positive growth metrics across key cities signal not just the strength of the hospitality sector but also the broader implications for connected services like transport and transfers.
Even with key reports and vigilant tracking, individual experiences in travel often tell a different story. With LocalsRide.com, travelers can hire cars with drivers from verified providers at reasonable prices, ensuring informed choices without the risk of unpleasant surprises. Enjoy the convenience, affordability, and wide array of vehicle options provided by LocalsRide. Book now on LocalsRide.com.