**Title:** India’s Hotel Sector Shows Resilience Amid Challenges
**Meta Description:** India’s top hotels report strong performance in May 2025, maintaining room rates despite challenges, with growth in occupancy and pricing discipline.
**URL Slug:** indias-hotel-sector-resilience-may-2025
**Headline:** India’s Hotel Industry Demonstrates Strong Performance in May 2025 Despite Challenges
In May 2025, India’s leading hotels exhibited robust performance compared to the same period last year, with average room rates stabilizing between ₹7,300 and ₹7,500. Despite facing disruptions from the Pahalgam terror attack in April, hotel rates remained resilient. However, occupancy saw a slight decline of 1-3% year-on-year and 7-9% from April, as reported by hospitality consultancy HVS Anarock.
The Radisson Hotel Group’s portfolio in India also reported strong results for the April-June 2025 quarter. Nikhil Sharma, managing director and COO for South Asia at Radisson Hotel Group, noted, “Despite geopolitical challenges and uncertainties, this quarter has reflected growth and resilience for us. We observed a 2% increase in occupancy and a 6% rise in average daily rates compared to the same period last year.”
This stability in hotel room pricing can be attributed to a structural shift in pricing strategies among hotel operators, who are now exercising greater rate discipline. Mandeep S. Lamba, president and CEO of HVS Anarock, explained, “They are no longer resorting to deep price cuts in response to short-term demand dips, making business more sustainable in the long run.”
Traditionally, May is a slower month than April, and Vikramjit Singh, founder of Alivaa Hotels, which operates 11 hotels with four more in development, noted a slight drop in occupancy in May 2024 due to the impact of the terror attack on North Indian hotels for about 15 days.
**Key Takeaways:**
– Stable hotel pricing has helped mitigate seasonal and aviation-related travel dips in June.
– May showed strong performance, with premium rates maintained in key cities.
– Although occupancy declined slightly due to external factors, Radisson and other hotel groups reported growth driven by domestic demand and pricing discipline.
– Hotel signings remained strong, with plans for larger room inventories compared to 2024.
Singh added, “This was a temporary blip; the business bounced back soon after. June, typically a slower month for the hospitality sector, is currently trending at par—if not slightly ahead—of the same period last year. With the holiday season approaching, resorts across the country are experiencing unprecedented demand.”
HVS Anarock reported that average hotel rates in May 2025 saw significant increases from the previous year, with cities like Mumbai and New Delhi achieving double-digit gains and maintaining premium rates of over ₹10,000 and ₹8,500, respectively. Notably, cities such as Jaipur and Hyderabad experienced remarkable year-on-year growth, with rates rising between 20% and 25%, followed by Chandigarh and Bengaluru with increases of 15% to 20%.
In an earnings call on May 30, Vikramjit Singh Oberoi, MD and CEO of EIH Ltd, stated, “In India, we continue to see strong demand this financial year as well.”
**FAQ Section:**
**Q: How did the Pahalgam terror attack affect hotel occupancy in India?**
A: The Pahalgam terror attack in April 2025 led to a slight decline in hotel occupancy in May, particularly affecting hotels in North India for about 15 days.