The India Hotel Market Review 2024, published by Horwath HTL, presents a comprehensive analysis of the country’s hospitality sector, highlighting its growth, challenges, and future opportunities. Despite economic slowdowns and the absence of major global events like the G20 or a Cricket World Cup, the Indian hotel industry exhibited resilience, achieving a national occupancy rate of 63.9%, an ADR (Average Daily Rate) of ₹7,951, and RevPAR (Revenue per Available Room) growth of 10.7%.

Key trends include a surge in demand, with daily room occupancy reaching 123,000 rooms, a record number of new hotel openings, and the continued expansion of luxury and upper-upscale segments. The report also underscores the increasing importance of leisure and religious tourism, with destinations like Ayodhya attracting millions of visitors.

However, the industry faces critical challenges, such as balancing tourism growth with environmental sustainability, managing inbound vs. outbound travel trends, and ensuring the financial viability of a rapidly expanding hotel pipeline. Moving forward, the sector must focus on sustainable expansion, strategic pricing, and destination management to maintain growth while enhancing India’s global appeal as a hospitality hub.

• All India Occupancy was 63.9%
• RevPAR crossed 5k for the first time since 2008 with growth of 11% over 2023
• All-India ADR was Rs. 7.9k; for 4 markets ADR was over Rs 10k. Seven of the top 10 markets, had Lux-UpperUp ADR at Rs 10k+; an eighth is moving closer
• Seven states in India contribute over 70% of national room revenue with Maharashtra solely contributing 20% of national room revenue
• Net supply growth in 2024 was 14.4k rooms
• Rooms demand per day up 29k rooms since 2019
• 105k rooms to be added by 2029
• The average size of new build hotels was 69 rooms; of conversions 46 rooms
• Market capitalisation of the sector has increased almost 12 times from Rs. 207 billion as of March 2015 to Rs. 2.5 trillion as at end January 2025

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