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Mumbai: The Indian hospitality industry is set to grow steadily in FY26, driven by domestic travel, recovering foreign tourist arrivals, and the expansion of the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment.
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…
