India's Hotels Project Cautious 14% Revenue Growth in 2025
Skift Take
Investor concerns over Human Metapneumovirus (HMPV) have shaken India's hotel and airline stocks, despite strong growth forecasts for the hospitality sector driven by surging demand and increasing supply.
Memories of the Covid-19 pandemic had investors in India shaken up after the first three cases of Human Metapneumovirus were reported in the country, with hotel and airline stocks taking the big hit. HMPV is not Covid-19 as it has been around, mostly in China, for many years, but you can't blame investors for being concerned after they brushed off Covid-19 when it first appeared.
The concern is that HMPV could upset all the rosy forecasts for the coming year. Crisil Ratings is projecting double-digit revenue growth for India's branded hotels, driven by surging demand and outstripping supply. Key contributors include domestic travel, MICE activities and rising foreign tourist influx. The agency forecasts a 13%-14% revenue rise for the year, followed by 11% to 12% growth in 2026. This follows 17% growth in the previous fiscal year. Crisil is anticipating a 20% cumulative rise in supply across this fiscal and the next, w
