Indian hospitality industry poised for steady growth in FY26

CareEdge Ratings projects a 7-8% increase in Revenue per Available Room (RevPAR) in FY26, following an 8-10% rise in FY25.

Average Room Rates (ARRs) are expected to hover above Rs 8,000, reaching Rs 8,400-8,600 in FY26, while occupancy levels are likely to stabilize between 66-68% from FY25 to FY27. However, supply-side constraints such as high land prices, escalating construction costs, and lengthy project timelines remain key challenges for hoteliers.

“India’s hospitality sector is adopting a measured…