HOTELS ON A HIGH

INDIA'S HOTEL INDUSTRY IS ALL BOOKED UP FOR GROWTH - SERVING LEISURE, BUSINESS, AND WEDDINGS WITH A SIDE OF REVPAR ON THE RISE!

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The Indian hotel industry is expected to maintain record occupancy levels in fiscal year 2025. Demand will likely continue in FY26, resulting in a modest rise in room tariffs. Branded hotels in India are projected to see 13% to 14% revenue growth in fiscal year 2025, followed by a growth rate of 11% to 12% in fiscal year 2026, according to an industry report.

India’s hotel industry is on the cusp of exponential growth, with leisure, MICE (Meetings, Incentives, Conferences, and Exhibitions), and wedding segments emerging as key revenue drivers.

With strong demand across both premium and budget hotels, the sector is poised to benefit from favourable economic conditions, infrastructure development, and enhanced air connectivity.

The growth trajectory of the Indian hospitality industry presents significant opportunities for both established players and new entrants, ensuring that the sector remains a vital contributor to the country’s economy in the coming years, said Sandeep Nagpal, Vice President and Head of Marketing in India at Cvent, a software company.

A report by credit ratings agency ICRA projects that hotel occupancy rates for FY25 will remain between 70% and 72%, the same level seen in FY24. These occupancy rates are on par with those recorded in fiscal year 2024 and represent the highest levels since 2007, highlighting the resilience of the Indian hotel industry.

The report also anticipates that the Revenue Per Available Room (RevPAR) for premium hotels across India will range from ₹5,500 to ₹5,800, up from ₹5,000 to ₹5,300 last year. This figure is expected to grow further to ₹5,800 to ₹6,200 in FY26.

Another recent industry report by rating agency Crisil projects that branded hotels in India will see 13% to 14% revenue growth in fiscal year 2025, followed by a growth rate of 11% to 12% in fiscal year 2026.