India's Hotel Sector Sees Growth in Tier 2-4 Markets with Increased Occupancy and ADR
In 2025, India's hotel sector experienced significant growth, achieving occupancy rates between 63-65% and an Average Daily Rate (ADR) of INR 8,500-8,700. This growth was driven by expansion into Tier 2-4 markets, which are becoming central to the sector's development. The report highlights that 64,118 keys were signed across 586 properties, indicating robust development activity. The sector's growth is attributed to rising incomes, improving mobility, and expanding travel aspirations, which are diversifying the market beyond traditional seasonality and destination types. Domestic tourism remains a cornerstone, with an estimated 4,548 million domestic tourist visits in 2025. The report also notes the importance of faith-based tourism and destination weddings in driving demand. 
