ICRA Forecasts Continued Revenue Growth for Premium Hotels in FY2026

ICRA Forecasts Continued Revenue Growth for Premium Hotels in FY2026

By Manu Vardhan Kannan

Published on January 17, 2026

India’s hospitality sector is entering a structurally stronger phase of growth, supported by rising domestic travel, diversified demand drivers, and favourable policy momentum, according to a recent report by ICRA Limited. The agency noted that the sector is now less exposed to global disruptions compared to the pre-pandemic period, with demand increasingly driven by domestic travellers.

ICRA highlighted that the industry remains on track to post record revenues and occupancy levels in FY2026–27, even as foreign tourist arrivals remain subdued. Sustained demand, limited new supply, and the growing adoption of asset-light operating models are helping hotels maintain strong performance and profitability.

“Demand drivers now include corporate travel, weddings and social events, religious and spiritual tourism, concerts, sports, MICE activities, and leisure-led travel to Tier-2 and Tier-3 cities,” said Sruthi Thomas, Vice President & Sector Head, Corporate Ratings, ICRA Limited. “The market can now support multiple formats and price points, pushing hotel companies to diversify beyond the traditional upscale business hotel model.”

According to ICRA, demand growth continues to exceed supply expansion, strengthening pricing power for hoteliers. Revenue per available room has touched record levels, with occupancy rates in the range of 69–71 per cent and average room rates between INR 8,100–8,200 during the first nine months of FY2026, compared with Rs. 7,800–7,900 in the same period of FY2025.

The report also noted that despite short-term disruptions caused by revised flight duty norms in December 2025, the sector showed resilience. Extended stays, alternative modes of travel, and bulk wedding bookings helped cushion the impact. Occupancy levels in Q3 FY2026 stood at 76–78 per cent, underlining strong underlying demand.

Thomas pointed to the increasing preference for asset-light models such as management and franchise contracts, which “generate fee-based, high-margin income, require minimal capital, and enhance returns on investment.” These models enable hotel operators to scale faster while maintaining financial discipline and brand standards. She added, “Owned assets continue to anchor brand prestige, especially in prime locations. A mixed ownership strategy, retaining core assets while franchising or managing growth assets, is now emerging as the preferred model.”

Looking ahead, ICRA expects premium hotel occupancy to remain between 72–74 per cent in FY2026, with average room rates rising to INR 8,200–8,500. Growth will continue to be supported by business travel, weddings, MICE activities, and leisure tourism.

ICRA also anticipates that the upcoming Union Budget will further support the hospitality sector through continued focus on tourism, infrastructure development, and financing incentives. With demand remaining strong and supply additions limited, India’s hotel industry is well placed for another year of record performance.


IHCL’s Taj InnerCircle-NeuPass Partners with oneworld to Expand Travel Rewards

IHCL’s Taj InnerCircle-NeuPass Partners with oneworld to Expand Travel Rewards

By Manu Vardhan Kannan

Published on June 5, 2026

Indian Hotels Company (IHCL), India's largest hospitality company, has announced a strategic partnership between its loyalty programme, Taj InnerCircle-NeuPass, and oneworld, the world's leading airline alliance. The collaboration aims to provide members with enhanced travel benefits and a more connected experience across hospitality and aviation services.

The partnership reflects the growing demand for integrated travel experiences, allowing loyalty members to enjoy rewards and privileges beyond traditional hotel stays and airline journeys.

Commenting on the development, Puneet Chhatwal, Managing Director & CEO, IHCL, said, “This partnership with oneworld reflects the growing consumer preference for more integrated travel experiences. As we expand Taj’s international footprint, such alliances strengthen our ability to engage a wider global audience, bringing together scale and warm Indian hospitality to create a seamless proposition across markets.”

Through the collaboration, Taj InnerCircle-NeuPass members will gain access to benefits on participating oneworld airlines. Members can currently enjoy limited-time savings with Cathay Pacific until September 30, 2026, with additional opportunities expected to be introduced in the future.

Similarly, oneworld loyalty members will receive exclusive savings on stays, dining, and spa experiences across IHCL's portfolio of hospitality brands. These include Taj, Claridges Collection, Brij, SeleQtions, Clarks, Gateway, Vivanta, Ginger, Tree of Life Hotels, and amã Stays & Trails.

Speaking about the partnership, Ole Orvér, CEO, oneworld, said, “We are pleased to bring together the world’s premium airline alliance with IHCL’s Taj InnerCircle Neupass. Members can now enjoy IHCL’s celebrated brands including the iconic Taj, bringing its century-old heritage of luxury in a first-of-its-kind partnership to extend the value of oneworld loyalty beyond air travel. Our shared commitment to quality and service will enhance how oneworld customers are recognised and rewarded throughout their journey.”

As part of the next phase of the collaboration, reciprocal loyalty recognition will be introduced. Taj InnerCircle Gold and Platinum members will be matched to the oneworld Sapphire tier, while Taj InnerCircle Copper and Silver members will receive oneworld Ruby status.

Likewise, oneworld Emerald members will be matched to Taj InnerCircle Gold status, while oneworld Ruby and Sapphire members will receive Taj InnerCircle Silver status.

Later this year, both organisations will also explore introducing opportunities for travellers to earn airline miles on hotel stays through select oneworld partner airline programmes, further enhancing the value proposition for frequent travellers.

The partnership marks a significant step in bringing together hospitality and aviation loyalty ecosystems, offering members greater flexibility, recognition, and rewards throughout their travel journey.


Evoke Rambagh Ayodhya Opens Near Ram Mandir, Strengthening the City’s Hospitality Landscape

Evoke Rambagh Ayodhya Opens Near Ram Mandir, Strengthening the City’s Hospitality Landscape

By Manu Vardhan Kannan

Published on June 5, 2026

Eyak Ventures has announced the opening of Evoke Rambagh Ayodhya, a large-scale hospitality development near the Ram Janmabhoomi Temple. Operated under the Evoke Experiences brand, the property aims to cater to the growing number of visitors travelling to Ayodhya as the city continues to emerge as one of India's leading religious tourism destinations.

The launch comes at a time when Ayodhya is witnessing a significant increase in tourist arrivals following the inauguration of the Ram Janmabhoomi Temple and ongoing infrastructure developments across the region. Designed for pilgrims, families, and leisure travellers, the property offers a comfortable and well-rounded stay experience close to the city's key attractions.

Spread across 25 acres, Evoke Rambagh is among the largest resort developments in Ayodhya. The property features multiple water bodies integrated throughout the landscape, creating a serene environment for guests. It houses 156 cottages designed to combine comfort and convenience while offering spacious accommodation options.

Strategically located on Parikrama Marg, the resort enjoys easy connectivity to Ayodhya Junction railway station and Maharishi Valmiki International Airport, making travel convenient for domestic and international visitors.

Guests can choose from a variety of dining options, including an all-vegetarian restaurant serving satvik cuisine inspired by Indian, Oriental, and Continental flavours. The property also features a lobby restaurant and room service facilities.

With Ayodhya increasingly becoming a destination for social celebrations and weddings alongside religious tourism, Evoke Rambagh has positioned itself as a venue for destination weddings, family functions, and corporate gatherings. The property includes a banquet hall, landscaped gardens, a clubhouse, and dedicated activity spaces for events of varying scales.

The resort also offers a range of wellness and recreational facilities, including a swimming pool, wellness centre, yoga sessions, meditation programmes, and naturopathy experiences. Additional guest services include concierge assistance, valet parking, golf cart transportation, multilingual support, and wheelchair accessibility.

To ensure a seamless stay, the property is equipped with modern infrastructure such as high-speed internet, backup power, air conditioning, housekeeping, laundry services, and ample parking facilities. Safety features including CCTV surveillance, smoke detectors, and fire safety systems have also been incorporated across the property.

For the convenience of pilgrims, the resort provides shuttle services to the Ram Janmabhoomi Temple at scheduled intervals, while airport and railway station transfers are available on a paid basis.

Speaking about the launch, Krinal Thaker, Marketing & Experiences Head at Evoke Experiences (An initiative by Eyak Ventures), said, "The opening of Evoke Rambagh is in line with our commitment towards the development of Ayodhya as a key tourist and religious destination in India. The idea behind developing this hospitality asset was to provide accessible and comfortable accommodations."

As Ayodhya continues to strengthen its position on India's tourism map, developments such as Evoke Rambagh are expected to play an important role in supporting the city's growing hospitality and tourism ecosystem.


Hotel Fire in Delhi's Malviya Nagar Claims 21 Lives, Triggers Major Safety Review Across the Capital

Hotel Fire in Delhi's Malviya Nagar Claims 21 Lives, Triggers Major Safety Review Across the Capital

By Manu Vardhan Kannan

Published on June 4, 2026

A tragic fire at a hotel in Delhi's Malviya Nagar area has claimed 21 lives, including foreign nationals, leaving the city shocked and grieving. The incident, which occurred on the morning of June 3, 2026, also left several people injured, with authorities warning that the death toll could rise as some victims remain in critical condition.

According to officials, 47 people were rescued from the building and rushed to nearby hospitals for treatment. Among those who lost their lives were nine citizens from African countries and two from Turkmenistan, while five foreign nationals were among the injured.

imageInvestigations have revealed serious violations at the property. Officials stated that the hotel was operating without clearance from the Fire Department. The building reportedly had approval for only six rooms but was functioning with more than 20 rooms. Authorities also found that the property had only a single entry and exit point, raising major concerns about safety compliance.

Police have apprehended the building owner, Lovkesh Bajaj, and registered a First Information Report (FIR) against him under Sections 105 (culpable homicide not amounting to murder) and 326 (mischief by fire) of the Bharatiya Nyaya Sanhita (BNS).

Preliminary findings suggest that sealed glass windows, malfunctioning sensor-operated gates, overcrowded rooms, and multiple fire safety violations turned the building into a death trap as smoke and flames spread rapidly through the premises.

In response to the tragedy, the Delhi government has announced a major review of accommodation establishments operating in the city. Tourism Minister Kapil Mishra said the government will officially withdraw its Bed and Breakfast policy and conduct inspections of all establishments registered under the scheme.

"We are going to officially withdraw the Bed and Breakfast scheme, and all establishments licensed under it will be checked," Mishra told PTI.

He further stated that strict action would be taken against operators violating licence conditions. Establishments found operating more than six rooms under the scheme will face licence cancellation.

The incident has also prompted immediate action from Delhi's administration. Lieutenant Governor Taranjit Singh Sandhu has ordered a month-long fire safety inspection drive covering hotels, lodges, inns, nursing homes, coaching institutes, restaurants, and other vulnerable commercial establishments across the city.

Officials said all rooms operating beyond approved limits in hotels, lodges, and inns will be shut down as part of the enforcement drive.

Delhi Chief Minister Rekha Gupta assured that the government is closely monitoring the situation and extending all necessary medical assistance and support to affected families.

President Droupadi Murmu expressed her condolences, saying, "The news of the loss of lives in the fire incident in Malviya Nagar, Delhi is extremely heartbreaking. I express my deepest condolences to the bereaved families and pray for the swift recovery of those injured."

Prime Minister Narendra Modi also conveyed his condolences, stating, "The loss of lives due to a fire incident in Malviya Nagar, Delhi is tragic. My condolences to those who have lost their loved ones. Wishing a speedy recovery to the injured. Authorities are providing all possible assistance to those affected."

The devastating incident has not only left Delhi heartbroken but has also brought renewed attention to the importance of safety and security standards across hotels, guest houses, and other accommodation facilities. As investigations continue, the tragedy serves as a stark reminder of the need for strict compliance with fire safety regulations to prevent such incidents in the future.

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