Ahmedabad Hotels Lead India’s Recovery with 36% RevPAR Surge
By ThePip Desk
Ahmedabad’s hotel market shows a remarkable comeback in May 2026, leading India’s recovery with a 24-36% RevPAR surge driven by higher rates and occupancy.
Ahmedabad’s hotel market just pulled off a major comeback in May 2026, leading India’s recovery with a massive 24-36% surge in Revenue Per Available Room (RevPAR), signaling strong consumer demand.
📌 What Happened?
Ahmedabad emerged as India’s top hotel market comeback story in May 2026, bouncing back sharply after a tough previous year. This recovery was comprehensive, driven by significant increases across key metrics.
The city, alongside Chandigarh, saw RevPAR jump an impressive 24-36% year-over-year. Ahmedabad’s growth stemmed from a 12-16% increase in average room rates (ARR) and a 10-20 percentage point rise in occupancy.
Nationally, India’s hotel sector also reported robust numbers for May. Average room rates hit approximately Rs 7,900-8,100, marking a 9-11% increase from the previous year. Occupancy reached 63-65%, pushing national RevPAR up 22-24% to Rs 5,000-5,265.
💰 Why It Matters
This rapid recovery in Ahmedabad, especially after last year’s disruptions like “Operation Sindoor” and a flight crash, highlights resilient consumer spending and a strong rebound in domestic travel, offering a positive signal for the broader economy.
For investors, this signals robust demand in the hospitality sector, potentially boosting hotel company revenues. Dolat Capital projects aggregate revenue for hotel companies to increase by about 12% year-on-year.
The varied growth across cities also provides insight. Goa and Pune showed strong RevPAR growth (19-24%), while major hubs like Hyderabad, Kolkata, and Chennai lagged with growth up to 9%, pointing to regional market dynamics and potential investment hotspots.
👀 What to Watch Next
Keep an eye on whether this recovery momentum sustains into the June quarter. Dolat Capital forecasts a more moderate mid-to-high single-digit RevPAR growth, so expectations should be tempered compared to May’s impressive figures.
Continued strengthening of travel activity and the easing of geopolitical pressures will be key drivers for the sector’s future performance. These factors will heavily influence investment decisions and the overall health of the hospitality industry.