India’s hotel industry remains optimistic about achieving double-digit growth in FY26, despite challenges posed by geopolitical tensions in the first quarter. This optimism stems from rising domestic demand, expanding infrastructure, and strategic pricing initiatives by hotel operators.
In FY25, the sector demonstrated resilience with strong revenue and profit growth, underpinned by increased travel from both business and leisure segments. Listed hotel companies reported robust earnings, while the addition of new properties highlighted growing investor confidence.
The industry expects sustained momentum in FY26, driven by higher disposable incomes, better transportation links, and an influx of foreign and domestic travelers. Strategic expansion in under-served markets and tier-2 cities further bolsters this outlook.
Industry leaders, including Lemon Tree Hotels, IHCL, and EIH, have indicated plans for portfolio growth and investments in technology to enhance guest experiences. As investor interest remains high, the sector is well-poised to weather geopolitical challenges while capitalizing on pent-up travel demand.
India’s hospitality landscape continues to evolve, offering a mix of luxury, mid-range, and budget options, ensuring broad appeal and steady growth for the years ahead.
