ICRA projects premium hotel room supply to grow at a 5–6 per cent CAGR between FY2025 and FY2028, although the demand is expected to rise faster at 8–10 per cent. Consequently, occupancies are set to improve by 200 basis points (2 per cent) to 72–74 per cent. Additionally, with FY2026 Average Room Rents (ARRs) is projected to reach ₹8,200–8,500, i.e. 3–6 per cent higher over the previous year.
