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Average Room Rates India

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ICRA expects India’s hospitality sector to grow 9–12% in FY2026, with premium hotel occupancy at 72–74% and room rates rising further as demand continues to outpace supply for the next 2–3 years.

ICRA Projects 9–12% Revenue Growth for Indian Hotels in FY2026; Occupancy, Room Rates to Stay Strong

ICRA expects India’s hospitality sector to grow 9–12% in FY2026, with premium hotel occupancy at 72–74% and room rates rising further as demand continues to outpace supply for the next 2–3 years.
Indian Hospitality Sector Booms: Strong Growth in RevPAR and Investments

ICRA Revises Indian Hospitality Sector Outlook to Stable as Growth Normalises in FY2026

ICRA revises India’s hospitality sector outlook to Stable for FY2026 as revenue growth normalises to 6–8%. Premium hotel occupancy and room rates remain healthy, with earnings and credit metrics supported by cost efficiency and asset-light strategies. Supply growth continues to lag demand in key markets, adding to price resilience.