Delhi and Mumbai emerged as India’s highest-performing hotel markets by revenue per available room (RevPAR) in FY26, overtaking leisure and spiritual destinations Ranthambore and Rishikesh for the first time since the Covid-19 pandemic, according to Hotelivate’s 2026 Indian Hospitality Trends & Opportunities Report.
Delhi recorded a RevPAR of INR 9,811, followed by Mumbai at INR 9,761. Ranthambore and Rishikesh reported INR 9,649 and INR 9,583, respectively, during the financial year.
The shift in rankings points to a recovery in corporate travel, international visitation and meetings, incentives, conferences and exhibitions (MICE) activity, which has supported hotel performance in the two metropolitan markets.
According to Manav Thadani, Founder Chairman, Hotelivate-Savills, conversions are increasing in Tier II and Tier III markets, creating more opportunities for branded hotel chains to enter secondary and tertiary markets in India. Delhi-NCR is expected to remain one of the country’s hottest hotel markets, driven by future supply and its distinction as the only market among the top 20 to record occupancy levels above 80% in both FY25 and FY26.
In FY25, Ranthambore and Rishikesh led the rankings, with RevPAR of INR 10,059 and INR 9,493, respectively. Mumbai recorded INR 9,458, while Delhi posted INR 8,846.
Varanasi also recorded a significant improvement in hotel performance, moving to fifth place in FY26 from ninth in the previous financial year. The city reported RevPAR of INR 8,857, up from INR 6,769 in FY25.
Udaipur and Goa followed, with RevPAR of INR 8,414 and INR 7,614, respectively, reflecting differences in performance across leisure and pilgrimage markets.
Meanwhile, Srinagar experienced the sharpest decline among the markets covered in the report. Its RevPAR fell 51.9% year-on-year to INR 3,323 in FY26, pushing the destination from among the country’s leading performers to the bottom 15 markets.
The report attributed the decline to a sharp drop in visitors following the Pahalgam terror attack in April 2025. Jammu, Jalandhar and Amritsar also faced demand pressures, with cancellations associated with Operation Sindoor affecting travel to markets closer to the border.
