India’s hotel industry witnessed a moderate slowdown in April 2026 as seasonal demand softening and geopolitical uncertainties weighed on performance. However, the sector continued to outperform last year’s levels, supported by resilient domestic travel demand and sustained activity across key commercial markets, according to the latest HVS ANAROCK Hospitality Monitor.
Average Room Rates (ARR) during April stood between ₹8,500 and ₹8,700, while occupancy levels ranged from 65-67%. Revenue Per Available Room (RevPAR) was estimated at ₹5,525-₹5,829. Although ARR and RevPAR declined sequentially compared to March due to the typical post-financial-year slowdown in corporate travel and MICE activity, the industry recorded year-on-year growth across key performance indicators.
Among major markets, Bengaluru emerged as the strongest performer, registering ARR growth of 15-17 per cent year-on-year, driven by robust corporate and commercial demand. Pune followed with growth of 11-13 per cent, highlighting the continued strength of South Indian hospitality markets. In contrast, Mumbai reported a decline in room rates, while Ahmedabad and Jaipur witnessed marginal softening.
On the occupancy front, Ahmedabad recorded the sharpest growth, with occupancy rising by 10-12 percentage points year-on-year, supported by strong commercial activity and event-led demand. Chandigarh also posted healthy gains, while Mumbai, Gurugram and Jaipur experienced occupancy declines. Despite this, Mumbai and New Delhi remained the country’s highest occupancy markets, operating at 77-81 per cent occupancy levels.
Hotel development activity remained strong. The branded hotel sector recorded 152 property signings comprising 16,668 keys during the first four months of 2026, marginally higher than the previous year. Openings also increased to 46 properties with 3,511 keys. Notably, Tier II, III and IV cities continued to attract a larger share of new signings and openings, reflecting growing investor confidence in emerging hospitality destinations.
Despite short-term demand moderation, the industry’s fundamentals remain robust, underpinned by domestic travel, business mobility and an expanding hotel development pipeline.
