India’s hotel sector performed strongly in May 2017, with rate and occupancy growth leading to a sharp rise in revenue per available room (revPAR).

According to the latest monthly data from STR, India’s nationwide occupancy increased 5.4% year-on-year to 61.4% last month, which marked the highest absolute occupancy level for a May in India since 2007. And this extra demand is allowing hoteliers to hike their rates; India’s average daily rate (ADR) climbed 3.5% to INR5,406.77 (approx. US$84) in May.

These two factors combined to raise nationwide revPAR by +9.1% to INR3,319.71.

RevPAR has now increased 4.2% during the first five months of 2017, driven by strong domestic tourism and rising affluence among India’s growing middle class. Specifically in May, hotel demand was supported by the Indian Premier League cricket and the African Development Bank annual meetings in Ahmedabad.

India’s May 2017 revPAR of approximately US$51 however, remains lower than the Asia Pacific average of US$68.