The Indian hotel industry is expected to experience a healthy revenue growth of 11–13 per cent in the next fiscal, following a strong 15–17 per cent growth in the current fiscal. This growth is supported by steady domestic demand and a ramp up in foreign traveller demand. The industry’s profitability will be sustained by strong earnings before interest, taxes, and depreciation (EBITDA) and limited capital expenditure. A CRISIL Ratings analysis of branded hotel companies with 70,000 rooms across categories indicates that domestic travel demand will sustain the industry’s performance, while foreign tourist arrivals are expected to remain around 10 per cent below pre-COVID levels.
