Indian Hospitality Soars: Leaders Confirm Strong Growth, Intact Pricing Power

• Indian hospitality sector anticipates robust growth, with industry leaders Nikhil Sharma and Chander K Baljee expressing strong optimism and dismissing near-term disruptions.
• Growth is primarily rate-driven, with Average Daily Rates (ADRs) up 10-12% and RevPAR in "low teens," fueled by corporate travel, MICE, weddings, and festive leisure.
• Pricing power remains strong, particularly in non-metro markets like Bengaluru, which saw a 20-23% rate increase, driven by corporate tech and MICE segments.
• An "aspirational class" of travelers, including Gen Z, is driving demand, willing to pay a premium for experiences, supported by improved connectivity and social media.
• Future growth is concentrated in mid-scale, upscale, and upper-upscale segments, with 70% of new hotel keys signed this year located in non-metro areas.

Why It Matters: Indian hospitality thrives on strong demand, rising rates, and non-metro expansion, driven by aspirational travelers.