As per ICRA, the Indian hotel industry is expected to grow by 7 to 9 per cent YoY in FY 2025, driven by spiritual tourism and tier-II cities. Demand for domestic leisure travel, MICE, weddings, and business travel is expected to drive growth. Pan-India premium hotel occupancy is expected to be 70 to 72 per cent, with average room rates expected to rise to ₹7,800 to 8,000 in FY25. “Hotels adopting asset-light expansions have seen improvements in return on capital employed, while asset-heavy expansions have led to constraints,” ICRA stated.
