The year closed at records
India's branded hotel sector closed 2025/26 at a record average daily rate and a record revenue per available room. Occupancy held at 68.1%, against a restated 68.2% for 2024/25. Hotelivate-Savills published the figures in the 2026 Indian Hospitality Trends and Opportunities report, its 29th edition, drawn from 2,168 hotels and 2,09,180 rooms across 60 brands and 208 sub-brands.
Average daily rate finished at INR 8,962, up 6.4%. RevPAR finished at INR 6,099, up 6.2%. Available room nights rose 5.8% and occupied room nights rose 5.6%. Demand trailed supply by 0.2 percentage points, the first such gap since 2020/21, and the report reads that margin as too narrow to mark a change in direction.
Four quarters, four disruptions
Operation Sindoor and the Ahmedabad flight crash cut travel in the first quarter, with some effect carried into the second. Heavy monsoon and flooding in hill destinations hit the second quarter. Flight delays and cancellations ran into the third. The fourth quarter opened with the strongest February hotels reported, then lost March to travel disruption linked to the West Asia crisis.
Roughly one hotel in four in the sample recorded a RevPAR decline for the year.
The four largest markets
Mumbai, New Delhi, Bengaluru and Hyderabad hold about 27% of nationwide supply. The four recorded ADR growth of 10.2% and RevPAR growth of 9.7%, against 6.4% and 6.2% nationally. Bengaluru grew RevPAR 14.8%, Hyderabad 13.2%, New Delhi 10.9% and Mumbai 3.2%.
New Delhi finished the year at INR 9,811 RevPAR and Mumbai at INR 9,761. Udaipur and Gurugram finished close to flat. The report puts Goa and Amritsar down about 4% and 5%.
The pipeline reaches 1,61,074 rooms
The five-year proposed pipeline stands at 1,61,074 rooms. That equals 77.0% of the 2,09,180 branded rooms in operation. The pipeline grew 41% from the 1,14,151 rooms reported the previous year. It carries 6,688 rooms that opened in the past six months and have not entered the existing-supply count.
Of the proposed rooms, 1,16,645 sit in active stages of development, 72% of the pipeline. The report applies an active-development ratio per market and drops projects that are inactive or in early planning. Full delivery would raise national branded inventory by 77% to about 3,70,254 rooms.
Where the rooms are planned
Tier 3 markets take close to half the proposed rooms. Tier 2 takes about 30% and Tier 1 about 20%. Almost four in five proposed rooms sit outside the largest markets. The tiering covers eight Tier 1 cities, 32 Tier 2 cities and 305 Tier 3 markets.
Tier 3 occupancy averaged 57.0% for 2025/26. Tier 1 averaged 75.0% and Tier 2 68.2%. Tier 3 supply grew 8.8% over the year and Tier 3 RevPAR grew 3.3%. Tier 1 and Tier 2 together grew supply 4.6% and RevPAR 7.3%. The report attributes that RevPAR growth to higher room rates, and the Tier 3 RevPAR gap to weaker occupancy.
Seven markets carry the absorption question
The report ranks seven markets by proposed rooms against existing stock. Ludhiana proposes 1,394 against 541 in operation, or 257.7%. Siliguri 1,410 against 552, or 255.4%. Navi Mumbai 3,689 against 1,638, or 225.2%. Tirupati 1,639 against 782, or 209.6%. Guwahati 1,777 against 881, or 201.7%. Bhopal 1,490 against 793, or 187.9%. Varanasi 1,486 against 831, or 178.8%.
The report groups Puri, Tirupati and Varanasi among spiritual destinations. It states that pipelines of this scale will test whether demand, often short-stay and price-sensitive, can support the proposed supply, and that large pipelines do not automatically translate into viable hotel markets.
What the pipeline sets up for rate
The ten largest markets by proposed room count hold close to 30% of the national pipeline. Bengaluru carries the largest single pipeline at 12,359 rooms, and it is the only market above 10,000. Jaipur proposes 6,684 against 8,501 in operation.
The 93,261 rooms filed under other cities make up 58% of the pipeline. Full delivery would lift that group's share of branded inventory from 35% to 45% by 2030/31. International brands hold 47% of proposed rooms and Indian-origin brands 53%. More than 75% of the pipeline sits across the midmarket, upper midmarket, upscale and upper upscale segments.
Achin Khanna, byline on the report, states in its opening: "Demand is growing, rates are rising and the development pipeline suggests that nobody intends to leave the table hungry. Yet the same helping of new supply could be welcome in one market and difficult to digest in another."