Indian Hospitality Industry’s RevPAR Set to Hit Decadal Highs by FY2025

Indian Hospitality Industry’s RevPAR Set to Hit Decadal Highs by FY2025

By Manu Vardhan Kannan

Published on January 8, 2025

The Indian hospitality industry is poised for robust growth, with Revenue Per Available Room (RevPAR) expected to hit decadal highs by FY2025, according to the latest ICRA report. The sector is projected to see a 7-9% YoY revenue growth in FY2025, followed by 6-8% YoY growth in FY2026, building on the strong base of FY2024.

ICRA forecasts that pan-India premium hotel occupancy will improve from 70-72% in FY2025 to 72-74% in FY2026. Meanwhile, the Average Room Rates (ARRs) for premium hotels are estimated to rise to ₹7,800-8,000 in FY2025 (an 8% YoY increase) and further to ₹8,000-8,400 in FY2026. Operating margins for leading hotel chains, sampled by ICRA, are expected to stay strong at 31-33% in FY2025 and FY2026.

Demand is being driven by sustained domestic leisure travel, MICE events, business travel, and weddings. Tier-II cities and spiritual tourism are also contributing to growth. However, foreign tourist arrivals (FTA) remain below pre-Covid levels, with recovery hinging on global macroeconomic conditions.

Market Dynamics and Drivers
Vinutaa S, Vice President and Sector Head – Corporate Ratings at ICRA, stated, “Domestic tourism will remain the prime driver, while gateway cities like Mumbai and NCR are likely to exceed 75% occupancy in FY2025 and FY2026. This surge in premium hotel ARRs will lead to a spillover of demand to mid-scale hotels.”

Healthy demand is supported by improved infrastructure, air connectivity, and a rise in large-scale MICE events, bolstered by new convention centers. Renovations and upgrades at several properties are expected to support ARRs further, while larger players benefit from asset-light expansions, management contracts, and operating leases.

Supply and Cost Trends
Supply growth is anticipated at a CAGR of 4.5-5% until FY2026, lagging behind demand, ensuring a revenue upcycle. Unlike the FY2009 downturn, which saw oversupply, the current scenario reflects cautious expansion. Land constraints in premium micro-markets have led to supply additions primarily through rebranding or upgradation, with greenfield projects concentrated in suburban areas.

On the cost side, the industry has maintained several cost-rationalization measures introduced during Covid, including a 15-20% reduction in staff-to-room ratios. Increased use of renewable power, stringent cost controls, and asset-light expansions have supported margins. However, rising employee costs and renovations could lead to variations in performance among companies.

Outlook
 The Indian hospitality industry's medium-term prospects remain optimistic, with sustained domestic demand, improving ARRs, and healthy operating margins. The sector's revival is underpinned by strategic supply management, infrastructure advancements, and evolving consumer preferences.


Fairfield by Marriott Jaipur Tonk Road Launches Vista 20, A Sky-High Dining Experience

Fairfield by Marriott Jaipur Tonk Road Launches Vista 20, A Sky-High Dining Experience

By Hariharan U

Published on September 12, 2025

Fairfield by Marriott Jaipur Tonk Road has officially opened the doors to Vista 20, its brand-new all-day dining restaurant and bar, perched on the 20th floor with sweeping views of the Pink City.

Designed to be more than just a dining spot, Vista 20 brings together global flavours, local inspirations, and a contemporary vibe, making it a lively new addition to Jaipur’s culinary map. Guests can now enjoy a dining journey that feels both refined and welcoming, from sunrise breakfasts and business lunches to sunset dinners and late-night drinks.

The thoughtfully curated menu features a mix of Indian favourites, international classics, and handcrafted beverages, each prepared with a focus on freshness and flavour. Whether it’s a casual get-together, a business meeting, or a special celebration, the versatile offerings make Vista 20 suitable for every occasion.

Adding to the experience are the chic interiors and warm service, paired with panoramic views stretching from Tonk Road to Jaipur Airport. The atmosphere strikes a balance between stylish and inviting, setting the tone for memorable moments against the city’s skyline.

Speaking at the launch, Gautam Chhabra, Hotel Manager, Fairfield by Marriott Jaipur Tonk Road, said, “We are delighted to introduce Vista 20, our newest all-day dining concept that embodies Fairfield’s philosophy of simple, delicious and memorable dining. Jaipur’s culinary landscape is rich and diverse and with Vista 20 we aim to offer guests an experience that blends local authenticity with international favourites, all served with the warmth and hospitality that Marriott is known for. The panoramic views from our 20th floor venue further elevate the dining journey, making every visit truly unforgettable.”

With its dynamic energy, breathtaking views, and a menu that celebrates both local and global tastes, Vista 20 is set to redefine the way Jaipur dines and socialises.


CGH Earth Unveils Marli Hill Bungalow, a Colonial-Era Retreat in Ooty

CGH Earth Unveils Marli Hill Bungalow, a Colonial-Era Retreat in Ooty

By Hariharan U

Published on September 10, 2025

CGH Earth Saha, known for its collection of handpicked escapes, has introduced Marli Hill Bungalow in the Nilgiris. Nestled atop a quiet hill in Ooty, this six-room retreat combines colonial charm with modern comfort, offering guests an intimate stay steeped in history, art, and nature.

The bungalow’s character comes alive through antique furniture, wooden floors, handpicked artworks, and locally inspired textiles. Each corner reflects the elegance of a bygone era while staying rooted in the warmth of contemporary hospitality.

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The dining experience is at the heart of Marli Hill, where guests gather in a colonial-inspired hall to enjoy meals prepared by in-house chefs. The menu blends traditional Tamil flavours with subtle British-Raj influences, all made with fresh, locally sourced ingredients. Leisurely afternoons are marked by high tea in the garden, complete with sculptures, flowering shrubs, and vintage garden furniture, while evenings feature alfresco barbecues under starlit skies.

What makes the stay truly personal is the team at Marli Hill, whose warmth and storytelling add depth to the experience. “Marli Hill Bungalow reimagines hospitality with a luxurious yet homely stay, nestled in the heart of Ooty,” said George Joseph, Vice President, Operations, CGH Earth.

As part of our Saha collection, Marli Hill represents everything we stand for: authenticity, sensitivity to place, and meaningful experiences. Designed for multi-generational families, friends, couples, and even solo travellers, Saha properties create an intimate setting where every guest is cared for with personal attention.”

Guests can choose to unwind by the fireplace, lounge, or garden gazebo, or explore Ooty’s attractions just a short drive away. From Doddabetta Peak and the Botanical and Rose Gardens to Pykara Waterfalls and Wenlock Downs, the region offers abundant natural and cultural richness. A nostalgic ride on the Nilgiri Mountain Railway, with stops at Dolphin’s Nose and Droog Fort, adds to the charm.

For heritage lovers, guided walks to colonial landmarks like St. Stephen’s Church or visits to Toda tribal villages showcase the Nilgiris’ layered traditions. Back at the bungalow, evenings close with barbecues and fireside conversations under the crisp Nilgiri sky.

With its quiet elegance, heritage character, and heartfelt hospitality, Marli Hill Bungalow stands as a soulful sanctuary in Ooty, a rare retreat that blends colonial nostalgia with the mindful luxury CGH Earth is known for.


Courtyard by Marriott Mahabaleshwar Offers 5,000 Bonus Points with Every Stay

Courtyard by Marriott Mahabaleshwar Offers 5,000 Bonus Points with Every Stay

By Hariharan U

Published on September 10, 2025

Courtyard by Marriott Mahabaleshwar has rolled out a rewarding offer for Marriott Bonvoy members, making every stay at the scenic hill-station retreat even more special. Guests checking in until September 30, 2025, will earn 5,000 bonus points per stay, with no blackout dates and no restrictions.

Perched amid Mahabaleshwar’s lush valleys, the hotel combines the calm of nature with the comforts of modern hospitality. From relaxing by the outdoor pool with sweeping views, to exploring local attractions or enjoying dining inspired by regional flavours, the property is designed to balance leisure and discovery.

What makes this promotion stand out is the value of Marriott Bonvoy points. Beyond booking future stays across Marriott’s 30+ hotel brands in 10,000 destinations worldwide, members can also redeem points for everyday shopping thanks to the Marriott Bonvoy–Flipkart partnership. That means memories made in Mahabaleshwar can turn into gadgets, fashion, or essentials back home.

“Marriott Bonvoy is more than a travel program, it’s a lifestyle currency,” the brand shares. “With Courtyard Mahabaleshwar’s new offer, guests enjoy both a memorable holiday and flexible rewards that carry forward into daily life.”

Perfect for couples, families, or professionals seeking a refreshing break, Courtyard by Marriott Mahabaleshwar curates experiences that celebrate nature, romance, and relaxation. And with 5,000 bonus points added to each stay, every getaway now gives back long after check-out.

So, whether it’s a quick midweek trip or a long weekend escape, Courtyard Mahabaleshwar ensures you earn more, relax more, and take home more than just a stay.

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