Despite geopolitical developments and high fuel costs impacting travel sentiments in the ongoing quarter, hotel chains are seeing a double digit revenue growth over the corresponding period of the previous fiscal year. Events such as Operation Sindoor launched
in May last year and the ensuing airspace restrictions and flight curbs, the tragic Air India crash in June and the Pahalgam terror attacks in April had dented demand during the April to June quarter last year. While this year has had its own set of challenges due to a hike in fuel prices, high flight fares and flight curbs and a dip in inbound traffic due to the US Iran war, the domestic demand has been resilient, hoteliers said.The April to June quarter is performing well, and we are on course to maintain a topline growth of 12-14% over last year in line with our guidance,” said Ankur Dalwani, EVP, and CFO of IHCL. He said the demand has been ‘resilient’, and markets such as Delhi, Mumbai and Bengaluru are holding strong. “Goa is seeing a growth of over 20%,” he added.As per data shared by Horwath HTL India with ET, markets such as Mumbai, Delhi, Bengaluru and Goa have seen a revenue per available room growth of 15.5%, 23.3%, 7.7% and 25.1% respectively last month compared to May 2025. In April 2026, Mumbai, Delhi, Bengaluru, and Goa saw a revenue per available room growth of 9.8%, 7%, 11.5% and 9.2% respectively over April 2025. “Markets like Kerala have seen a revenue per available room growth of over 25% for May 2026. Overall, the growth for May is very positive even discounting that May 2025 was impacted by Operation Sindoor,” said Vijay Thacker, MD, Horwath HTL India.By April this year, performance had moved back into marginally positive territory for Marriott International compared to March that saw a lot of cancellations, said Rajeev Menon, president, Asia Pacific excluding China (APEC). “In May, we were back to strong double-digit growth, and June is tracking in a similar fashion. Looking ahead, forward bookings remain strong,” he told ET last week. Quite a few disruptions impacted business for hotel chains in the April to June quarter last year and most chains should see a double-digit growth this quarter, said Manav Thadani, founder chairman of Hotelivate. “I think we were more impacted domestically last year. The performance could also be on the higher side of double digits. The growth is there from a rates standpoint and not just occupancy growth,” he added.Radisson Hotel Group portfolio is seeing a growth of 18% over last year, and the strength in domestic demand has helped offset the challenges arising from softer inbound traffic, said Nikhil Sharma, MD and COO (South Asia). Markets such as Srinagar, Shimla, Jammu and Sonmarg are seeing strong momentum for the chain as travellers prefer domestic breaks.Gaurav Singh, COO of Chalet Hotels said the chain is seeing close to double-digit rate led revenue growth despite a shift from last year’s regional headwinds to more global challenges this year. Leisure and resort destinations are performing well for the chain while markets like Hyderabad and Bengaluru have been subdued.The stock markets have already reacted favourably to the news of a framework agreement for a peace deal between the U.S. and Iran and there is optimism that the deal will come through. The outlook for June should be good, said Samir Kuckreja, founder and CEO of Tasanaya Hospitality.