ICRA expects the Indian hospitality industry’s revenues to grow by 9-12% YoY in FY2026, despite the high base of FY2025, supported by domestic leisure travel, demand from meetings, exhibitions, conferences and events (MICE), weddings and business travel. 

ICRA anticipates the pan-India premium hotel occupancy rate to stay at 72-74% in FY2026, largely similar to 70-72% recorded in FY2024 and FY2025. ARRs for premium hotels are projected to rise to Rs. 8,200-8,500 in FY2026 from Rs. 8,000-8,200 in FY2025.

Exhibit: Trend in Current Sentiment Index (CSI) and Future Expectation Index (FEI)