Bengaluru Leads Indian Hotel Market With 27% Arr Growth In September 2025

Published on November 1, 2025

India’s edifice manufacture is experiencing a singular resurgence, pinch Bengaluru emerging arsenic a standout performer. According to nan latest HVS Anarock report, nan metropolis recorded a 27% year-on-year maturation successful Average Room Rates (ARR) successful September 2025, starring nan federation successful this metric. This surge reflects a broader inclination of betterment and maturation wrong nan Indian hospitality sector.

Bengaluru’s Hospitality Boom

Bengaluru’s awesome ARR maturation is attributed to respective cardinal factors:

• Corporate Events and Conferences: The metropolis hosted important events for illustration NASSCOM Future Forge and Tech Developer Confluence, attracting business travelers and boosting request for edifice accommodations.
• Tech Industry Growth: As India’s tech hub, Bengaluru continues to tie professionals and entrepreneurs, sustaining precocious request for some short-term and extended stays.
• Tourism Appeal: With its blend of taste practice and modern attractions, Bengaluru remains a celebrated destination for some home and world tourists.

These factors mixed person created a robust situation for nan city’s hospitality sector, starring to accrued room rates and higher gross per disposable room.

National Hospitality Trends

While Bengaluru leads successful ARR growth, different Indian cities are besides witnessing affirmative trends:

• Hyderabad: The metropolis recorded a 21% to 23% summation successful ARR, driven by its expanding IT and pharmaceutical sectors.
• Ahmedabad: Benefiting from a surge successful waste and acquisition exhibitions and firm events, Ahmedabad saw occupancy rates summation by 10% to 12% year-on-year.
• Chandigarh, Gurugram, and Mumbai: These cities knowledgeable occupancy improvements ranging from 3% to 12%, reflecting nan continued betterment of some business and leisure segments.

However, Goa knowledgeable a flimsy dip successful mean room rates, pursuing a engaged vacation play earlier successful nan year. This indicates a seasonal change alternatively than a semipermanent trend.

Factors Driving Hotel Industry Growth

Several elements lend to nan wide maturation of India’s edifice industry:

• Increased Domestic Air Travel: Domestic aerial rider postulation grew by astir 23% year-on-year successful August 2023, marking nan sixth consecutive period that home aerial postulation successful nan state has surpassed pre-COVID levels.
• High-Profile Events: Events for illustration nan G20 Summit and nan ICC Men’s Cricket World Cup played a pivotal domiciled successful revitalising nan fortunes of nan assemblage during nan year.
• Corporate and Leisure Travel: The resurgence of weddings, Meetings, Incentives, Conferences, and Exhibitions (MICE), and firm recreation segments person contributed to nan industry’s growth.

Outlook for nan Future

Looking ahead, nan outlook for India’s hospitality assemblage remains positive. HVS anticipates continued growth, driven by sustained home demand, nan return of world travel, and nan description of niche tourism segments. The maturation of recreation infrastructure crossed nan state further supports this optimistic forecast.

Conclusion

Bengaluru’s exceptional capacity successful nan edifice manufacture underscores nan city’s position arsenic a cardinal subordinate successful India’s hospitality sector. With a operation of business, tourism, and infrastructure development, Bengaluru sets a benchmark for different cities aiming to capitalise connected nan increasing request successful nan hospitality industry.

As nan manufacture continues to retrieve and evolve, stakeholders must attraction connected maintaining work quality, embracing sustainability, and adapting to changing traveler preferences to prolong this maturation trajectory.