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.


Novotel Cairo Airport Marks World Oceans Day with ‘From the Nile to the Ocean’ Initiative

Novotel Cairo Airport Marks World Oceans Day with ‘From the Nile to the Ocean’ Initiative

By Hariharan U

Published on June 25, 2026

Novotel Cairo Airport commemorated World Oceans Day with its "From the Nile to the Ocean" initiative, a sustainability-focused programme designed to highlight the connection between local environmental responsibility and global marine conservation.

The initiative brought together wellness, education, and responsible dining experiences to encourage greater awareness of the importance of protecting water resources. Through the campaign, the hotel sought to demonstrate how local actions can contribute to broader environmental preservation efforts.

The day began with an outdoor yoga session overlooking the Nile River, creating a reflective and mindful setting for participants. The wellness activity reinforced the campaign's message that meaningful environmental change begins with individual awareness and conscious choices.

Following the yoga session, hotel associates participated in an interactive educational presentation focused on water conservation and ocean safety. The discussion highlighted the role local waterways play in supporting larger marine ecosystems and emphasized the importance of protecting rivers such as the Nile as part of a global sustainability effort.

As part of the celebration, Novotel Cairo Airport's culinary team curated a special menu centred on fresh, local, and responsibly sourced ingredients. Served poolside, the dining experience showcased how sustainable sourcing and conscious food choices can contribute to environmental stewardship while supporting local communities.

By integrating wellness activities, environmental education, and sustainable dining into a single initiative, the hotel aimed to create a holistic experience that encouraged participants to reflect on their relationship with natural resources and the environment.

The programme further reinforces Novotel Cairo Airport's commitment to responsible hospitality and sustainability, while supporting Accor's broader vision of promoting environmentally conscious practices across its global portfolio.

Through initiatives such as "From the Nile to the Ocean," the hotel continues to engage both its team members and guests in conversations around sustainability, inspiring collective action toward the protection of vital water ecosystems and the preservation of the planet's natural resources.


The Forum Hotel & Convention Centre Celebrates International Yoga Day with Wellness Morning in Ahmedabad

The Forum Hotel & Convention Centre Celebrates International Yoga Day with Wellness Morning in Ahmedabad

By Hariharan U

Published on June 24, 2026

The Forum Hotel & Convention Centre marked International Yoga Day with a thoughtfully curated wellness initiative that brought together guests, wellness enthusiasts, and hotel associates for a morning dedicated to mindfulness and holistic wellbeing in Ahmedabad.

The event featured a guided yoga and meditation session designed to encourage participants to slow down, reconnect with themselves, and embrace balance in an increasingly fast-paced lifestyle. Attendees from different age groups took part in yoga asanas, breathwork exercises, and mindfulness practices in a calm and energising environment.

Positioned as a community-focused initiative, the celebration reflected the growing importance of wellness in modern hospitality experiences. The session aimed to create a shared space where participants could prioritise both physical and mental wellbeing while taking a conscious break from daily routines.

Speaking about the initiative, Kalpesh Prajapati, Managing Director of The Forum Hotel & Convention Centre, highlighted that wellness has evolved from being an occasional luxury to an essential part of contemporary living and travel. He emphasised the hotel’s commitment to creating experiences that promote mindfulness, balance, and overall wellbeing within the community.

As wellness continues to shape the hospitality landscape, The Forum Hotel & Convention Centre has been focusing on experiences that extend beyond accommodation and events, encouraging meaningful engagement with both guests and the wider Ahmedabad community.

The International Yoga Day celebration concluded with healthy refreshments and informal interactions among participants, reinforcing the importance of conscious living and collective wellbeing.


The Leela Gandhinagar Marks International Yoga Day with Wellness-Focused Celebration

The Leela Gandhinagar Marks International Yoga Day with Wellness-Focused Celebration

By Manu Vardhan Kannan

Published on June 23, 2026

The Leela Gandhinagar celebrated International Yoga Day with a thoughtfully curated wellness experience that encouraged guests to slow down, reconnect, and embrace a more mindful way of living. Inspired by Aujasya by The Leela, the brand's philosophy centred on vitality, balance, and mindful living, the event brought together guests, wellness enthusiasts, and hotel associates for a morning dedicated to holistic wellbeing.

Hosted within the serene surroundings of the hotel, the programme went beyond physical exercise to focus on mindfulness and self-awareness. Participants took part in guided yoga sessions, mindful breathing exercises, and moments of quiet reflection, creating an environment that encouraged relaxation and inner balance.

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The experience was designed around the belief that true wellbeing is built through meaningful and enriching moments. As the session concluded, guests were invited to continue their wellness journey with an Aujasya-inspired breakfast featuring wholesome dishes, fresh fruits, herbal infusions, and nutritious selections curated to complement the spirit of the occasion.

The event reflected the holistic wellness approach of Aujasya, where movement, nourishment, and mindfulness come together to promote renewal and personal wellbeing. Through the experience, participants were encouraged to pause from their daily routines, recharge, and adopt a more balanced lifestyle.

Commenting on the occasion, Vikas Sood, General Manager, The Leela Gandhinagar, said, “Wellbeing is increasingly becoming an essential part of how people choose to live, travel, and engage with the world around them. Through Aujasya-inspired experiences, we aim to create meaningful opportunities that encourage balance, mindfulness, and a sense of inner renewal. International Yoga Day offered a wonderful occasion to celebrate this philosophy and share it with our guests and associates.”

As wellness continues to play a growing role in luxury hospitality, The Leela Gandhinagar remains focused on creating experiences that blend authentic hospitality with mindful living. Guided by the principles of Aujasya, the hotel continues to offer opportunities for guests to reconnect with themselves through thoughtful and restorative experiences.

More than a celebration of yoga, the event served as a reminder of the importance of mindfulness, nourishment, and inner balance in creating a healthier and more fulfilling way of life.

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