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Hospitality firms see little room for growth in FY26
Business Standard
|June 10, 2025
Revenue growth may be 6-8% after 3 years of double-digit rise
Growth in the Indian hospitality sector is expected to normalize in this financial year FY26 as revenue growth for listed companies is set to settle between 6 percent and 8 percent, largely due to the base effect following three years of continuous double-digit revenue expansion seen by the industry from 2022-23 to 2024-25 (FY25).
"We estimate pan-Indian premium hotel occupancy to hold at 72-74 percent in FY26, slightly higher than the 70-72 percent levels witnessed in 2023-24 and FY25. The average room rates (ARRs) for premium hotels are projected to rise to ₹8,200-8,500 in FY26, after ₹8,000-8,200 in FY25," credit rating agency ICRA said in a new note on Monday, while revising the sector outlook to 'stable' from 'positive'. Supply growth is expected to lag demand over the next 12-18 months.
Denne historien er fra June 10, 2025-utgaven av Business Standard.
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