Hotelivate’s 2025 Indian Hospitality Trends and Opportunities report, now in its eighth year, introduced the updated Hotel Volatility Index (HVI) — a benchmark that tracks the performance of 100 established hotels operating since 2012. This index aims to eliminate distortions caused by new properties that are yet to stabilise, providing a clear and fair picture of India’s mature hotel market performance.
The report revealed that HVI hotels significantly outperformed the national average in FY2024/25. These established assets recorded an occupancy rate of 74.4% compared to the nationwide average of 68%, and an Average Daily Rate (ADR) of INR 13,226 versus INR 8,432. Together, these figures resulted in a RevPAR premium of 71.2%, marking the strongest performance recorded in recent years. The premium positioning of HVI hotels in high-demand markets contributed to this strong outcome, highlighting the pricing power and stability of seasoned assets.
The study also compared urban and leisure hotel trends. Urban properties achieved an occupancy rate 11.2% higher than leisure hotels, signaling the rebound of business and city-centric travel. However, leisure hotels continued to enjoy a RevPAR premium of 54.4%, though the gap narrowed from 60% in the previous year. The narrowing difference was driven by a 10.8% year-on-year rise in urban hotel RevPAR, compared to 6.3% growth in leisure properties, underscoring the recovery of corporate and urban travel demand.
Hotelivate concluded that established hotels demonstrate remarkable resilience during volatile market cycles. By leveraging operational efficiencies and adapting to evolving consumer preferences, these properties are well-positioned to deliver consistent, long-term returns. The report emphasised the importance of asset management, regular renovations, and staff development to maintain competitiveness and sustain high profitability.
Overall, the 2025 HVI findings reaffirm that stable, mature hotel assets — when managed strategically — continue to outperform newer or under-stabilised properties. This reinforces the value of patience, reinvestment, and operational discipline in India’s evolving hospitality landscape.
