Layout Test Article — Indian Ocean Hotel Markets
Executive Summary
The Indian Ocean hotel markets delivered a strong performance in 2025, with key destinations recording significant improvements in occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR). This review covers Mauritius, Seychelles, Maldives, and Madagascar — the region’s four primary hospitality markets.
Post-pandemic recovery has accelerated across all four markets, driven by renewed airlift capacity, luxury resort openings, and a growing emphasis on sustainable tourism. The region is now firmly positioned as one of the world’s premier leisure destinations.
Market Performance Overview
Occupancy Rates
Occupancy rates across the Indian Ocean improved by an average of 4.2 percentage points year-on-year, with Mauritius leading the recovery at 74.8% — its highest level since 2019.
| Destination | 2024 Occupancy | 2025 Occupancy | YoY Change |
|---|---|---|---|
| Mauritius | 70.1% | 74.8% | +4.7pp |
| Seychelles | 65.3% | 69.5% | +4.2pp |
| Maldives | 71.6% | 75.2% | +3.6pp |
| Madagascar | 48.7% | 53.0% | +4.3pp |
Average Daily Rate (ADR)
ADR growth was driven primarily by the luxury and upper-upscale segments, where demand consistently outpaced new supply. The Maldives continues to command the highest ADR in the region at USD 842, reflecting its positioning as an ultra-luxury destination.
| Destination | 2024 ADR (USD) | 2025 ADR (USD) | YoY Change |
|---|---|---|---|
| Mauritius | 285 | 312 | +9.5% |
| Seychelles | 394 | 421 | +6.9% |
| Maldives | 798 | 842 | +5.5% |
| Madagascar | 112 | 124 | +10.7% |
Revenue Per Available Room (RevPAR)
RevPAR growth was strongest in Mauritius (+15.1%), reflecting the combined improvement in both occupancy and rate. Madagascar, while starting from a lower base, posted impressive growth of 16.4%.
| Destination | 2024 RevPAR (USD) | 2025 RevPAR (USD) | YoY Change |
|---|---|---|---|
| Mauritius | 200 | 233 | +15.1% |
| Seychelles | 257 | 293 | +13.8% |
| Maldives | 571 | 633 | +10.9% |
| Madagascar | 55 | 66 | +16.4% |
Key Trends
Sustainable Tourism
Environmental sustainability has become a central pillar of hospitality strategy across the Indian Ocean. Mauritius and the Seychelles have introduced mandatory sustainability certifications for new hotel developments, while the Maldives is investing heavily in solar-powered resort infrastructure and coral reef restoration programmes.
Airlift Expansion
New direct routes from key European and Asian source markets have significantly boosted arrivals. Air Mauritius resumed its London Heathrow service, while Emirates and Qatar Airways expanded their Seychelles and Maldives frequencies. These developments have improved market accessibility and reduced the traditional seasonality gap.
Luxury Pipeline
The region’s luxury hotel pipeline remains robust, with over 4,200 rooms under development across 28 projects. Notable openings include the Ritz-Carlton Reserve in the Maldives, the Rosewood in Mauritius, and the Aman resort in the Seychelles — all targeting the ultra-high-net-worth traveller segment.
- Maldives: 14 projects, 2,100 rooms
- Mauritius: 8 projects, 1,200 rooms
- Seychelles: 4 projects, 600 rooms
- Madagascar: 2 projects, 300 rooms
Outlook for 2026
The outlook for Indian Ocean hotel markets remains positive. Continued airlift expansion, a healthy development pipeline, and growing demand from emerging source markets — particularly China, India, and the Middle East — are expected to sustain growth through 2026 and beyond.
Key risks include rising construction costs, climate vulnerability, and potential geopolitical disruptions to air travel. However, the region’s unique value proposition as a premium leisure destination provides a strong buffer against cyclical downturns.
For more information or to discuss these findings, please contact the CBRE Excellerate Hotels & Hospitality team.