Record Growth Predicted for Indian Hotel Sector: What to Expect — India Report
Skift Take
The Indian hotel industry is expected to sustain record occupancy levels in fiscal 2025, credit ratings agency ICRA said at a webinar on Tuesday.
As per ICRA's projections the occupancy rate is expected to remain between 70-72%, the same as recorded in fiscal 2024. Before this, the last time India recorded 72% hotel occupancy was in fiscal 2007.
Meanwhile, the agency expects the Revenue Per Available Room (RevPAR) of premium hotels across India to stand at INR 5,500-5,800, up from INR 5,000-5,300 last year. This is further projected to grow to INR 5,800-6,200 next fiscal.
Last month, capital market company Crisil said that branded hotels in India are likely to record 13-14% revenue growth in fiscal 2025 and 11-12% the following year.
Demand Drivers for Indian Hotels: Over the next 9-12 months, the demand factors for the industry will remain healthy, ICRA said. Leisure and business travel, along with MICE, will continue to drive demand for the industry, both ICRA and Crisil said. ICRA noted:
The preference for branded hotels is robust among leisure travelers. Weddings are moving from independent halls to hotels and the growth in destination weddings is adding to revenue. Corporate MICE demand is als