India’s hospitality sector will likely see revenue growth of 9–12% in FY2025–26, as per a new ICRA report. Sustained domestic travel and stable occupancy drive this upbeat forecast. Domestic leisure, weddings, and a resurgence in MICE activity act as the primary engines for this 2026 momentum. ICRA analysts point to a demand-supply gap; while travel appetites surge, new room inventory remains disciplined. Consequently, average daily rates (ADRs) should hold firm, boosting bottom-line margins for operators.
Though global geopolitical shifts pose a minor risk to international arrivals, the “experience economy”— including concerts and destination events — is filling any gaps. This robust operating environment allows chains to deleverage balance sheets and fund aggressive refurbishments. Essentially, the sector is pivoting from a post-pandemic recovery phase into a period of sustained, high-margin stability.
