Hospitality Sector Revenue to Grow 9-12% by 2026 Due to Sustained Demand: Report

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India's Hospitality Sector Set for 9-12% Revenue Surge in 2025-26: Icra Report

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News18•04-03-2026, 17:15

India's Hospitality Sector Set for 9-12% Revenue Surge in 2025-26: Icra Report

•Indian hospitality sector to see 9-12% revenue growth in 2025-26, driven by steady demand, says Icra report.
•Growth fueled by domestic leisure, MICE, weddings, and resilient corporate demand, sustaining healthy performance.
•Pan-India premium hotel occupancy projected at 72-74% in FY26; Average Room Rates to rise to Rs 8,200-8,500.
•Demand-supply imbalance to persist, with demand growth (8-9%) outpacing inventory growth (5-6%), supporting rates.
•Diversified demand drivers and asset-light expansion models are reducing vulnerability and improving financial health.

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