YES Securities: India Branded Hotel Demand to Rise 10.4% CAGR, Supply 9%

• Branded hotel room demand in India is projected to grow at a 10.4% CAGR from FY25-30, outpacing supply growth of 8-9%.
• Mid-premium and economy hotels are expected to lead expansion, with supply growth of 9-11% CAGR.
• Key growth centers include Amritsar, Chandigarh, Dehradun, Lucknow, Navi Mumbai, Noida, and Udaipur, though some may face temporary oversupply.
• The luxury segment will see constrained supply growth at 5.6% CAGR, but strong demand is expected to drive average room rates and occupancy.
• Actual supply growth may be around 7.7% CAGR (FY25-30E), with metro markets seeing slower expansion at 4.6%.

Why It Matters: Indian hotel demand outpacing supply means higher room rates and occupancy.