INDUSTRY OUTLOOK

Market Size & Growth

• The Indian hotel industry is projected to reach ₹1.65 lakh crore (~$20 billion) in FY 2025, growing at a CAGR of ~8–10%.
• Occupancy rates (OR) have stabilized at 65–70%, with Average Daily Rates (ADR) and Revenue per Available Room (RevPAR) surpassing pre-COVID levels.
• Domestic travel and weddings have become core demand drivers, with strong growth in religious tourism, leisure travel, and business travel resuming steadily.

Key Growth Drivers

Domestic Tourism Boom

• Rise of weekend getaways, spiritual circuits (e.g., Ayodhya, Varanasi), and short-haul trips post-pandemic.

Infrastructure Push

• Government investments in airports, highways, and Smart Cities improving last-mile connectivity.

G20 & Global Events Impact

• Events like G20 summits and ICC World Cup 2023 boosted occupancy and international visibility.

Rise of Mid-Scale & Budget Hotels

• Chains like OYO gaining dominance in Tier II/III cities.

Digitalization & Tech

• Contactless check-ins, cloud PMS, AI-based dynamic pricing gaining adoption across segments.

Tourism Revival

• Inbound tourism on the rise again post-COVID, though still trailing domestic volume.
• Government’s “Dekho Apna Desh” and ease of visa efforts supporting international arrivals.
• Medical tourism and eco-tourism are also key long-term tailwinds.

Summary

India’s hotel industry is in a strong growth phase post-pandemic, driven by domestic demand, infrastructure development, and increasing affordability. Mid-scale, budget, and religious tourism are fueling expansion, while digital transformation and asset-light models are shaping the future. The outlook remains positive with stable margins, growing occupancy, and renewed investor confidence.

LATEST SHAREHOLDING