India’s hotel industry staged a sharp recovery in June 2026, posting double-digit revenue growth on the back of resilient domestic demand and a favourable base effect after disruptions caused by geopolitical tensions, early monsoon conditions and aviation-related challenges last year. According to the latest HVS ANAROCK Hotel Monitor, national occupancy stood at 64-66 per cent, up 3-5% points year-on-year, while average room rates (ARR) remained strong at INR 7,900-8,100, registering a 10-12% increase over June 2025. Revenue per available room (RevPAR) surged 17-19% to INR 5,056-5,346.
Among key markets, Bengaluru led ARR growth with a 17-19% jump, followed by Chandigarh (13-15%), Pune and Gurugram (12-14% each), while Hyderabad recorded an 11-13% increase. On the occupancy front, Chandigarh and Ahmedabad posted the strongest gains of 8-10% points, with Hyderabad improving by 7-9% points.
The branded hotel development pipeline remained robust. Hotel signings reached 28,268 keys across 259 properties in the first half of 2026, reflecting growth of 8 per cent in keys and 6 per cent in properties over the previous year. Tier-II and Tier-III/IV markets together accounted for 71% of all signed keys, underlining continued investor confidence beyond major metros.
However, openings lagged demand growth. Only 6,269 branded hotel keys opened across 83 properties during the period, down 9% year-on-year, highlighting ongoing supply constraints.
Despite a seasonal slowdown in Q2 compared to the record first quarter, the sector maintained positive momentum, with RevPAR rising 11-13% year-on-year, signalling sustained strength in India’s hospitality market.
