Two, three-star hotels score over four, five-star peers in revenue growth

Thanks to a rise in travel in tier II and III cities and towns and the expansion of budget hotel brands for the growth

It is not the four- and five-star hotels that are clocking the highest growth in revenue per available room (RevPAR), even as the hospitality sector has started showing signs of a turnaround. The two- and three-star hotels are seeing a stronger growth in RevPAR, thanks to a rise in travel in tier II and III cities and towns and the expansion of budget hotel brands.

The data collated by hospitality consulting firm Hotelivate, by analysing over a 1,000 domestic hotels, shows how three-star hotels saw the highest RevPAR growth of 8.2 per cent among all segments in 2017-18 (FY18). The