HBI Staff | Hyderabad 
The Indian hospitality industry has continued its steady recovery, with December 2024 reflecting year-on-year growth in occupancy rates and average room rates (ARR), according to the latest HVS-ANAROCK Hotels & Hospitality Monitor – January 2025. While the sector is edging closer to pre-COVID levels, significant variations in performance were observed across key markets.
Occupancy rates for December 2024 showed encouraging signs, with Mumbai, Kolkata, Ahmedabad, and Kochi crossing the 80% threshold. Mumbai emerged as the frontrunner, registering the highest occupancy at 81-83%, while Kochi displayed remarkable year-on-year growth, improving by 5-7 percentage points. However, not all markets shared the same trajectory, as Chandigarh and Hyderabad reported slight declines in occupancy, ranging from 2-5 percentage points.
The sector’s performance in Q4 CY2024 highlighted a notable recovery compared to the preceding quarter, although pre-COVID occupancy benchmarks remain elusive. Among the cities, Jaipur stood out with the highest increase in occupancy from Q3 CY2024, whereas Bengaluru, Chennai, Pune, Gurugram, and Hyderabad experienced a dip. Encouragingly, year-on-year occupancy growth was observed in Q4 CY2024 across most markets compared to the same period in CY2023.
ARR trends revealed positive developments, with nearly all major commercial markets recording strong year-on-year growth during Q4 CY2024, barring Ahmedabad. December 2024 continued this momentum, with ARR rising across key markets, except for Goa, where only slight growth was noted. Despite this, Goa retained its position as the market with the highest ARR, exceeding INR 14,000. Kochi once again stood out as a high performer, leading the year-on-year ARR growth chart due to strong demand.
