September shone bright in a seasonally weak third quarter of calendar year 2025 (Q3CY25) for the hospitality sector, with continued growth in average room rates (ARR) and decent occupancies.
“September 2025 recorded a healthy performance for the Indian hotel sector, with continued growth in ARR and stable occupancies, as demand from corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments gained momentum,” stated the monthly hospitality monitor from HVS Anarock.
ARR grew to a range of ₹7,900-8,100, an uptick of 6-8 per cent sequentially and 9-11 per cent year-on-year (Y-o-Y). Occupancies rose to 61-63 per cent, growing 1-3 percentage points sequentially, while remaining stable on Y-o-Y basis. Revenue per available room (RevPAR) grew to ₹4,819-5,103 — an uptick of 10-12 per cent sequentially and on an annual basis.
“Various markets witnessed double-digit growth. Bengaluru (with 25-27 per cent growth) and Hyderabad (with 21-23 per cent growth) emerged as the top gainers while Goa was the only market to experience a Y-o-Y dip in average rates in September 2025,” the report added.
Occupancy at the national level recorded a slight Y-o-Y improvement, reflecting steady performance despite ongoing regional variations. Multiple markets exceeded the 70 per cent mark, indicating strong demand in select regions, it added.
“Ahmedabad saw the highest Y-o-Y growth in occupancy rates with 10-12 percentage points, likely driven by a dense calendar of trade shows, sectoral expos, and national conferences, along with heightened corporate and GIFT City activity,” the report stated.
Meanwhile, the hotel sector recorded a slight dip in performance when compared to the previous quarter, largely due to the seasonal slowdown in the industry in Q3.
ARR dipped 1-3 per cent sequentially while occupancy dropped 0-2 percentage points. RevPAR dropped 3-5 per cent from Q2.
However, on Y-o-Y basis, ARR for the quarter was up 5-7 per cent, occupancies remained stable, while RevPAR grew 4-6 per cent.
 "Indian hotels post steady gains in September despite seasonal slowdown")
