Geopolitical Tensions and Low Season Drag India Hotel Occupancy Below 60%
Photo Credit: Hotels at the Delhi Aerocity near Indira Gandhi International Airport. GMR Aerocity
Skift Take
The conflict with Pakistan might have led to the Indian hotel industry declining in May month-on-month, but it does not seem to have derailed the sector from its long-term ascent.
The seasonal slowdown and tensions with Pakistan brought occupancy and revenue per available room (RevPAR) down for the hospitality industry in India in May. According to hospitality advisory firm HVS Anarock’s latest data, RevPAR for hotels across India in May were down by over 20% as compared to April.
Occupancy also declined month-over-month to 58-60% in May. This was also lower than the occupancy rate last May. The average room rates declined 10-12% compared to April, HVS data showed.
HVS said, “Occupancy trends in May 2025 revealed a noticeable year-on-year dip across most major markets, reflecting seasonal softening combined with geopolitical sentiment dampening travel demand. Chandigarh reported the sharpest decline... possibly due to the tensions between India and Pakistan.”
Sector Still Remains Strong: Despite the slowdown in May, compared to the month before, the industry fared better than it did last year. The average room rates we
