ICRA: Indian Hospitality Revenue to Grow 9-12% in FY2026
ICRA’s January 2026 industry report projects the Indian hospitality sector will sustain revenue growth of 9-12% YoY in FY2026, despite the high base of FY2025. Premium hotel occupancy is expected to hold at 72-74% with average room rates rising to Rs 8,200-8,500 .
Domestic leisure travel, MICE demand, weddings, and consistent business travel. Flight disruption from FDTL revision in December 2025 was “temporary and contained”—travelers extended stays or used alternate transport.
Why it matters for B2B
For hotel suppliers and revenue managers sustained pricing power with supply lagging demand. For tour operators the domestic leisure segment remains the most resilient revenue stream. For corporate travel buyers: expect continued rate pressure in premium segments through FY2026 and FY2027.
“Demand drivers now include corporate travel, weddings and social events, religious and spiritual tourism, concerts, sports, MICE activities, and leisure-led travel to Tier-2 and Tier-3 cities.”
— Sruthi Thomas, Vice President & Sector Head, Corporate Ratings, ICRA Limited
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