India's Hospitality Soars in 2025, FY26 Poised for Strong Growth

• India's hospitality sector ended 2025 on a high, driven by corporate, spiritual, and youth-led experiential travel, despite geopolitical uncertainties.
• Spiritual tourism to destinations like Ayodhya and Varanasi, along with major concerts by Coldplay, significantly boosted footfall and local economies.
• Revenue growth in 2025 (6%) missed 7-9% expectations due to aviation shocks and over-reliance on air travel.
• Lack of infrastructure status for hospitality led to high borrowing costs, hindering expansion and pushing towards asset-light models.
• FY26 outlook is strong, with business travel, leisure, MICE, and weddings expected to drive double-digit RevPAR growth and higher ARR.

Why It Matters: Indian hospitality shows resilience and strong growth potential, overcoming 2025 challenges for a robust FY26.