Hotels see strong growth in June-end quarter

Destinations such as Srinagar, Pahalgam, Sonmarg, Shimla, and Jammu witnessed encouraging momentum, reflecting Indian travellers’ continued preference for domestic leisure destinations

Hotel chains registered double-digit growth in the June-end quarter on the back of strong travel demand. Last year, properties in North India had seen a dip in business following the Pahalgam terror attack and Operation Sindoor. With no geopolitical headwinds this time, hotels are seeing a rebound. The growth trend is visible in air traffic, too, with domestic airlines carrying 9.5 per cent more passengers in May on a year-on-year basis. “The April-June quarter has been positive for us, with our portfolio delivering approximately 18 per cent year-on-year growth compared to the same period last year. This growth was driven by healthy occupancy levels and continued strength in average daily rates, particularly across key leisure markets, resulting in strong RevPAR (revenue per available room) performance,” said Nikhil Sharma, MD and COO, Radisson Hotel Group (South Asia).Sharma said the North Indian markets saw strong performance this year. “Destinations such as Srinagar, Pahalgam, Sonmarg, Shimla, and Jammu witnessed encouraging momentum, reflecting Indian travellers’ continued preference for domestic leisure destinations,” he added.room ratesAccording to consultancy HVS Anarock, occupancy levels across most key hotel markets recorded a strong year-on-year improvement in May, compared to last year when demand had been impacted by war-like conditions in the country. “Chandigarh registered the sharpest increase in occupancy, rising by 22-24 percentage points followed by Goa and Ahmedabad,” it said. Average room rates rose 9-11 per cent in May on a year-on-year basis to ₹7,900-8,100 with all markets showing growth except Kolkata“The June-end quarter has been encouraging for Leisure Hotels Group, with the company recording an overall 30 per cent growth compared to the same period last year,” said Shahzad Aslam, Sales Director.Demand is being increasingly led by experience-led leisure travel, said Aslam. Last-minute and online bookings continue to gain momentum, with Leisure Hotels properties in Uttarakhand, Uttar Pradesh, Himachal Pradesh, Rajasthan and Goa witnessing increase in occupancy and rates, he added.Published on July 8, 2026