India’s hospitality sector is undergoing a remarkable transformation, with visionary companies like Praveg Limited leading the way through bold partnerships and innovative approaches. Praveg’s recent collaborations with industry giants are not only elevating service standards but also setting new benchmarks for sustainable and experiential travel across the country’s most coveted destinations.
India’s Hospitality Sector: A Landscape of Growth
The Indian Hospitality Industry is experiencing unprecedented momentum in 2025:
- Market Size & Growth: The sector is projected to reach USD 55 billion by 2025, growing at a compound annual growth rate (CAGR) of 10-12% from 2024 to 2025, driven by a surge in domestic tourism, rising disposable incomes, and significant infrastructure development.
- Occupancy & Revenue: Occupancy rates are expected to exceed 68-70% in 2025, up from 66-67% in 2024, reflecting strong market recovery and demand for both business and leisure travel. Average Room Rates (ARR) are forecast to cross ₹ 8,500 – ₹ 9,000, while Revenue Per Available Room (RevPAR) surged by 16.3% year-on-year in Q1 2025.
- Expansion & Investment: The first quarter of 2025 saw the signing of 79 new hotels with 9,478 keys, and the opening of 31 branded hotels with 3,253 keys, highlighting the sector’s expanding footprint and sustained investor interest.
- Segment Performance: The upscale and midscale segments led in both new openings and signings, while luxury and upper-upscale segments followed closely.
- Regional Highlights: Bengaluru posted the highest RevPAR growth at 38.3%, followed by Delhi (26.2%) and Mumbai (21.3%), driven by major events and robust travel demand.
- Profitability: Operating margins for large hotel entities are projected at 31-33% for FY2025, up from 20-22% pre-pandemic, thanks to cost rationalization, higher occupancy, and improved rates.
Government initiatives such as the expansion of e-visa facilities and continued investment in tourism infrastructure are further fuelling this growth, positioning India as an emerging global tourism hub.
Strategic Collaborations Redefining Hospitality
In early 2025, Praveg Limited announced a pivotal three-year partnership with Mahindra Holidays & Resorts India Limited (MHRIL). This alliance is focused on enhancing hospitality experiences in prime locations such as Daman, Diu, and Ayodhya. By securing 70 rooms through a unique inventory agreement—comprising both fixed and floating accommodations—Praveg leverages its operational expertise alongside Mahindra’s renowned reputation for premium holiday offerings. The partnership is designed to deliver exceptional guest satisfaction, raise service quality, and diversify the range of holiday experiences available to travellers in these destinations. This joint effort is a significant step toward reshaping the hospitality landscape, promising a blend of top-notch amenities and comprehensive facilities for guests.
Praveg’s commitment to innovation is further underscored by its strategic partnership with Indian Hotels Company Limited (IHCL), one of India’s leading luxury hotel chains. As part of this agreement, IHCL has assumed full operational control of Praveg’s flagship resort—Praveg Atoll’s - on the breathtaking Bangaram Island in Lakshadweep. The property is now managed under IHCL’s prestigious SeleQtions brand, ensuring that guests experience the highest standards of luxury, personalized service, and sustainability. This collaboration not only elevates Bangaram Island as a premier global destination but also aligns with Praveg’s vision of eco-conscious, experiential hospitality.
Industry Innovations and Sustainable Practices
Praveg’s approach to hospitality is characterized by a strong emphasis on sustainability and innovation. Its properties are designed with low-impact structures, eco-friendly utilities, and marine conservation practices that protect the delicate ecosystems of their locations. The integration of advanced technology, personalized guest experiences, and curated local activities ensures that every stay is memorable and meaningful. Through partnerships with industry leaders, Praveg is able to amplify its reach, tap into global marketing networks, and attract discerning travellers seeking unique, responsible tourism options.
Praveg’s Flagship Property: Bangaram Island, Lakshadweep
At the heart of Praveg’s transformative journey is its flagship resort on Bangaram Island, Lakshadweep. Now operated by IHCL under the SeleQtions brand, this luxury property offers an unparalleled blend of serenity and sophistication. Guests are treated to exclusive experiences such as gourmet dining, rejuvenating spa treatments, and immersive local excursions, all curated to showcase the island’s natural beauty and cultural heritage. The resort’s architecture and operations are rooted in sustainability, with a strong focus on preserving the island’s ecological balance. Personalized services, enhanced by IHCL’s global loyalty programs, ensure that every guest enjoys a seamless and indulgent stay. This property stands as a testament to Praveg’s ethos—combining innovation, quality, and environmental stewardship to create an exceptional hospitality experience in one of India’s most pristine island paradises.
Ending
Praveg’s strategic alliances and industry innovations are not just transforming its own portfolio, but are also setting new standards for hospitality across India. By fostering partnerships that prioritize quality, sustainability, and guest-centric experiences, Praveg is helping to shape the future of travel - where luxury and responsibility go hand in hand.
