India Hotel Sector Performance June 2025 witnessed a stable performance for the Indian hotel sector, as early monsoon getaways and travel along new infrastructure corridors helped offset the impact of external disruptions, including the Air India Flight AI171 crash, the Bengaluru crowd tragedy, and ongoing geopolitical tensions.
As per HVS ANAROCK Hotels & Hospitality Monitor, ARRs and Occupancy trends remain as below:
ARR Trends Across Key Indian Markets (Year-on-Year Growth: June 2025)
Average rates in June 2025 saw robust year-on-year growth, with double-digit gains in several cities.
Mumbai and New Delhi maintained their premium positioning, with average rates exceeding INR 10,000 and INR 8,500, respectively. Meanwhile, Hyderabad saw the highest year-on- year growth.
Goa was the only market to experience a year-on-year dip in average rates in June 2025, likely due to the post-summer travel slowdown, early monsoon onset, and subdued leisure demand.
Occupancy Trends Across Key Indian Markets
Occupancy trends in June 2025 displayed mixed performance across Indian markets, with overall marginal year-on-year improvement at the national level. However, regional disparities remained evident, driven by geopolitical uncertainty, early monsoon impact, and shifting travel patterns.
Chennai led the country in occupancy in June 2025, closely followed by Mumbai, with both cities clocking rates in the 73- 76% range. Jaipur and Ahmedabad, meanwhile, posted the strongest year-on-year gains.
