According to a forecast by ICRA, pan-India premium hotel occupancy is expected to reach decadal highs of 70-72 per cent in FY2024 and FY2025, after recovering to 68-70 per cent in FY2023. Hotel average room rates (ARRs) are expected to rise to ₹7,200-₹7,400 in FY2024 and ₹7,800-₹8,000 in FY2025. It also predicted a 7-9 per cent revenue growth in the Indian hotel industry in FY2025, up from the 14-16 per cent growth in FY2024. Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA, said, “Demand is expected to remain strong across markets in FY2025 as consumer sentiments continue to be healthy and corporate performance is stable. Domestic tourism would be the prime driver, with FTA improvement depending on the global macroeconomic environment.”
