HBI Staff | Hyderabad 
Branded hotels across India achieved a room occupancy rate of 67.5%, the highest since FY 2008, and recorded the highest-ever average daily rate (ADR) of INR8,055 in FY 2024, highlighting significant growth in the hospitality sector, according to a report by consultancy Hotelivate.
The sector’s growth was bolstered by a 9.2% increase in room inventory during FY 2024, with over 15,200 rooms added, bringing the total supply to over 180,000. The expansion was evident in both major metro cities and emerging markets such as Jaipur, Dehradun, and Navi Mumbai.
“India’s hospitality industry showed robust growth, with key cities reporting significant improvements in performance metrics. Occupancy rates surged, with Mumbai leading at 79%, followed by New Delhi at 78.7%, and Hyderabad at 75.1%, nearing pre-pandemic levels. Udaipur led in ADR with ₹15,093, owing to its luxury hotel offerings, while Mumbai recorded an ADR of INR11,219, driven by a rebound in corporate travel. Revenue per available room (RevPAR) also grew across several cities, with Mumbai topping the list at INR8,683,” Hotelivate’s report stated.
The highest RevPAR growth was observed in the five-star category, as the sector benefited from strong leisure travel, meetings, and conferences. Although foreign tourist arrivals remain below pre-pandemic levels, domestic tourism is on the rise.
“Key markets like Bengaluru, Mumbai, and Goa are leading this expansion, with 77% of the proposed supply actively under development. This positive trend is driven by increasing tourism, business travel, and infrastructure improvements. As of March, the branded pipeline for the next five years stands at 88,706 keys, regardless of construction status,” said Manav Thadani, founder chairman of Hotelivate.
