Hotel Industry Sees Strong FY26 in Spite of Headwinds

After robust FY25, listed hotels expect double-digit growth in the current fiscal year

- Varuni Khosla

Even as geopolitical tensions tempered the first quarter of FY26, India's hotel industry is confident of steady growth in the full fiscal year. Many listed hotel players expect double-digit growth supported by improving consumer incomes, expanding infrastructure, and disciplined pricing strategies.

This follows a strong FY25 that saw most hotel companies reporting strong revenue and profit gains, driven by rising travel demand from both business and leisure travelers. In the current year, too, the industry sees robust overall demand, with new hotel openings and increased investor interest signaling confidence in the sector's future.

According to Chander K. Baljee, managing director of Royal Orchid Hotels, Q1 of FY26 saw some challenges in the North and West due to tensions with Pakistan, but overall the impact was limited. "Most of our hotels are managed properties in the south, which were less affected because of geography," he told Mint.