India’s hospitality sector recorded growth in occupancy, room rates and revenue during 2025/26, even as performance varied across cities and a substantial development pipeline raised questions about future supply absorption. These findings are from the 2026 Indian Hospitality Trends & Opportunities Report by Hotelivate-Savills, which examines the country’s hotel market and emerging investment opportunities.
The 29th edition of the annual report draws on data from 2,168 hotels representing 2,09,180 rooms. National occupancy stood at 68.1%, while average daily rate (ADR) increased 6.4% to INR 8,962. Revenue per available room (RevPAR) rose 6.2% to INR 6,099. Nearly three-fourths of the surveyed hotels recorded RevPAR growth, while around one-fourth reported a decline.
Bengaluru and Hyderabad led RevPAR growth among India’s 20 major hotel markets, registering increases of 14.8% and 13.2%, respectively. New Delhi followed with 10.9% growth. Mumbai remained among the leading markets by RevPAR, although growth was more moderate at 3.2%. Jaipur also reported healthy growth, while Goa and Amritsar recorded declines, highlighting differences in performance across destinations.
The report noted that India’s five-year branded hotel development pipeline had reached 1,61,074 rooms, equivalent to approximately 77% of the existing branded inventory. Nearly 1,17,000 rooms are already in active development. Almost 80% of the proposed rooms are planned outside Tier 1 markets, with close to half earmarked for Tier 3 destinations, reflecting the growing focus on emerging locations.
The scale of proposed development is particularly significant in Tirupati and Varanasi, where planned rooms are equivalent to approximately 477% and 442% of their existing branded inventories, respectively. The report also noted that only five of the 20 major hotel markets have at least 10,000 rooms. These figures underline the importance of evaluating local demand, infrastructure, market maturity and the pace of supply absorption before committing to new projects.
Themed India, À La Carte, the report analyses hotel performance by positioning, city tier, administrative zone and major market. Achin Khanna, Managing Partner, Strategic Advisory, Hotelivate-Savills, said rising demand and room rates were encouraging development, but the impact of new supply would differ across markets. He emphasised the need for investors and developers to adopt a market-specific approach, carefully assessing location, product positioning and project timing rather than relying solely on national growth trends.