Hyderabad, Bengaluru Hotels See Double-Digit Growth in Average Room Rates in Sept
In September, ARR ranged between Rs 7,900 and Rs 8,100 at the national level
Chennai: Hyderabad and Bengaluru, with strong double-digit growth, led the Indian hospitality sector’s continued healthy performance in Average Room Rate (ARR) and stable occupancy in September.
In September, ARR ranged between Rs 7,900 and Rs 8,100 at the national level. Occupancy remained steady at 61-63 per cent, with RevPAR at Rs 4,819–5,103. Main growth drivers were corporate travel and MICE segments, as per the data collated by HVS-Anarock.
City-wise, Bengaluru with around 27 per cent and Hyderabad with 23 per cent led with strong double-digit rate growth in ARR. Goa witnessed a year-on-year dip in average rates and other markets showed moderate growth ranging from 0-20 per cent.
Ahmedabad led with the highest occupancy growth of 10-12 percentage points, supported by trade shows, expos, and corporate activity. Several markets, including Chandigarh, Gurugram, and Mumbai, showed occupancy growth between 3-12 percentage points. At the end of September, total domestic air traffic reached 110.7 million passengers, up 4.99 per cent from the previous year.
The September quarter saw a slight dip in performance quarter-over-quarter due to seasonal slowdown. In Q3 2025, ARR across the cities was reported Rs 7,500-7,700, while occupancies ranged around 60-62 per cent, and Q3 RevPAR was around Rs 4,500-4,774.
Key markets like New Delhi, Mumbai, Bengaluru, and Chennai showed ARR growth of 1-9 per cent in Q3 2025 compared to Q3 2024. Occupancy in markets like Mumbai and Bengaluru remained stable, while Ahmedabad and Goa saw increases by 5-12 percentage points.
As per the data, 308 branded hotels with 38,806 keys were signed year-to-date till September-end. Tier 1 cities accounted for significant signings with 28 per cent increase. Tier 1 cities saw 120 hotel openings with 9,219 keys added year-to-date.
