Horwath HTL Report – India Hotel Market Review 2025

Horwath HTL’s India Hotel Market Review 2025 provides a year-end analysis of India’s hotel market performance, combining CoStar performance data with Horwath HTL’s supply research and market insights.

The report reviews national trends and key city performance, highlights the opportunities and challenges shaping hotel owners, investors, developers and operators, and outlines how India’s hotel sector continues to grow despite global and domestic disruptions.

Key Highlights 

All-India Performance Strengthened in 2025

India’s hotel market delivered steady growth across key benchmarks in 2025, supported by strong pricing momentum and sustained demand expansion. The market achieved:

• 64% Occupancy
• ₹8,624 ADR (+8.6%)
• ₹5,522 RevPAR (+10.8%) 

Demand and Supply Both Expanded, with Record Openings

2025 saw one of the strongest supply years on record, alongside continued demand growth:

• Demand: ~133k rooms per day (+9.1%)
• Supply: ~216k rooms per day (+7.8%)

The report notes that while openings and conversions exceeded 19k rooms, net growth was moderated by deflags, resulting in ~15.5k net new rooms. 

External Events Softened What Could Have Been a Stronger Year

While growth remained positive, performance was impacted by several disruptions, including:

• Maha Kumbh demand diversion
• West Asia travel impact
• Harsh weather events
• Indigo flight disruptions (FDTL)
• Slower Foreign Tourist Arrivals 

Market Leadership and Rate Growth Continued

Key market insights include:

• Mumbai led occupancy among major markets at 77.1%
• 5 markets achieved 5-digit ADRs, with Udaipur leading at ₹15.9k
• Goa showed ADR softness, while several business cities maintained rate growth 

Pipeline Remains Strong, but Delivery Timing is a Question

India’s branded hotel pipeline continues to expand:

• Pipeline reached ~144k rooms (net increase of ~39k during the year)
• If fully delivered, inventory could reach ~360k rooms by 2030, though the report suggests ~300k is more likelydue to delays. 

Key Opportunities Emerging Across Segments and Regions

The report highlights growth opportunities in:

• Religious destinations and pilgrimage-led travel
• Wellness-focused hospitality concepts
• Weekend getaways near business cities
• North-East, Odisha, Andhra Pradesh and Madhya Pradesh
• ADR upside due to slower-than-expected supply delivery

Download the India Hotel Market Review 2025 report.