The Indian hotel industry is on track to witness robust growth in revenue in FY25 with domestic travel, including leisure and business, and meetings, incentives, conferences and exhibitions (MICE) segments to be the major demand drivers during the fiscal.
According to ICRA, the industry is expected to report a 7-9% revenue growth in FY25, over the 14-16% growth predicted for FY24. The pan-India premium hotel occupancy is estimated to be at decadal highs of around 70-72% in FY24 and FY25, after recovering to 68-70% in FY23.
Moreover, the pan-India premium hotel average room rate (ARR) could rise to nearly Rs 7,200-7,400 in FY24 and further to Rs 7,800-8,000 in FY25. The revenue per available room (RevPAR) is expected to be at an 8-12% discount to the FY08 peak in FY24 and subsequently converge towards the FY08 peak in FY2025, as per the rating agency.
“Sustenance of domestic leisure travel, demand from MICE, including weddings and business travel (despite a temporary lull…
