India's Hotel Boom: Demand Set to Outstrip Supply Through 2029

India's hospitality industry is gearing up for never-before growth with demand set to far outstrip supply in the next 3-4 years. Industry forecasts a 7-9% revenue growth in FY2025, led by strong domestic travel, MICE activities, and business travel. Premium hotel rates are expected to hit 72-74% by FY2026, and average room rate is expected to grow to Rs. 8,000-8,400. While plans are underway to increase 100,000 rooms by 2029, demand growth is projected to open a healthy gap that will drive increased occupancy rates and potentially increase average daily rates. This gap offers a golden chance for the industry to benefit from India's growing middle class and better infrastructure.

 

Sources: ICRA, Business World, BW Hotelier,