India's Hotel Sector to Hit Decade-High for Revenue
Skift Take
The Indian hotel industry is expecting to report a 7-9 percent revenue growth in FY2025 with occupancy likely to be at decade highs.
Rating agency ICRA said the Indian hotel industry is expecting to report a 7-9 percent revenue growth in FY2025 with occupancy likely to be at decadal highs. ICRA believes this will be driven by sustenance of domestic leisure travel, demand from MICE, including weddings and business travel despite a temporary lull during the election period. They also believe spiritual tourism and tier-II cities will contribute meaningfully in FY2025. Domestic tourism has been the prime demand driver and they expect that to continue in the near term as foreign tourist arrivals have yet to recover to pre-Covid levels. ICRA estimates pan-India premium hotel occupancy was at decadal highs of 70-72 percent in FY2024 and FY2025 after recovering to 68-70 percent in FY2023. Pan-India hotel average room rates are expected to go up to around Rs 7,200-7,400 in FY2024 and rise to Rs 7,800-8,000 in FY25. The result will be RevPAR at an 8-12 percent discount to the peak FY2008 in FY2024, getting to the
