The hospitality sector in India maintained its growth momentum in Q3 2024, recording an annual growth of 10.8%
According to JLL’s Hotel Momentum India (HMI) Q3 2024 report, the Indian hospitality industry continued on its upward trend in Q3 2024 (July–September), with a 10.8% YoY rise in Revenue Per Available Room (RevPAR).
With a 2% Quarter-on-Quarter (QoQ) improvement in RevPAR over Q2 2024, this achievement was mostly driven by an increase in Average Daily Rate (ADR).
A seasonal tendency that greatly aided in the sector’s growing momentum was the spike in business travel that occurred in the third quarter.
With an impressive YoY RevPAR rise of 23.6%, Hyderabad topped the list of large markets. Chennai and Mumbai came in second and third, with growth rates of 17.7% and 16.8%, respectively.
All other major cities, including Bengaluru, Chennai, and Mumbai, saw strong rise in ADR and RevPAR, with the exception of Delhi and Goa, where ADRs slightly declined.
While occupancy levels were unchanged from Q3 2023, key markets saw an uptick in RevPAR driven by ADR gains.
The sector’s success was also significantly influenced by the consistent demand for corporate travel and Meetings, Incentives, Conferences, and Exhibitions (MICE) events.
In Q3 2024, 96 branded hotel agreements were signed, increasing the number of rooms in the inventory by 10,686. Notably, 12 of these signings—or 11% of the overall inventory—were conversions.
Additionally, 30 new hotels were opened during the quarter, adding 1,988 keys. Of these, almost 80% were in Tier II and III cities including Tirupati, Udaipur, Ranchi, and Mussoorie.
The festival season and a rise in business travel are expected to support the hotel industry’s solid Q4 outlook. The sector’s development momentum is anticipated to be maintained by the expansion of MICE events, weddings, and other social gatherings.
“We continue to see investors moving money in this asset class, supported by the strong performance of hotels across India,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL. Both greenfield projects and running assets in the business and leisure sectors are gaining significant traction.
He went on to say, “The industry continues to show rise in average daily rates (ADR) compared to Q3 2023, despite the fact that the summer season reduced the demand for corporate room nights in Q3 2024. The festival season, the overall increase in domestic business travel, the growth of MICE events, weddings, and other social gatherings all point to a positive performance for the industry in the next quarter.
