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.


Planet Hotels & Resorts Accelerates India Expansion with Lifestyle Hospitality Focus

Planet Hotels & Resorts Accelerates India Expansion with Lifestyle Hospitality Focus

By Hariharan U

Published on April 7, 2026

Planet Hotels & Resorts is steadily strengthening its presence across India, with a clear focus on lifestyle-driven hospitality and premium travel experiences. Based out of Mumbai, the brand is building a strategically curated pipeline aimed at high-potential leisure, urban, and spiritual destinations.

Under the leadership of Anand Chatterjee, who has led the hospitality vertical for over a decade, the company is positioning itself as a key player in India’s evolving premium hospitality space.

The group’s journey began with the launch of Planet Hollywood Beach Resort in Goa in 2013, which set the tone for its design-forward and experience-led approach. Since then, the portfolio has expanded across destinations such as Thane, Powai, and Manali.

Flagship urban properties like Planet Hollywood Thane City and The Beatle Hotel reflect the brand’s commitment to design-led stays and immersive guest experiences. Expanding its boutique footprint, the group also marked its entry into the hills with a Manali property under The Beatle brand in 2025, catering to travellers seeking elevated mountain retreats.

In line with its focus on the elite segment, the brand recently introduced Kings Mansion in North Goa. Designed as an ultra-premium destination, the property aims to deliver privacy, bespoke services, and a refined hospitality experience tailored to discerning travellers.

Looking ahead, Planet Hotels & Resorts has outlined an ambitious roadmap with upcoming projects planned across New Delhi, Tirupati, Udaipur, and Hyderabad, while also evaluating additional markets. The expansion strategy is focused on tapping into India’s most sought-after travel destinations, spanning leisure, spiritual, and urban segments.

Speaking on the growth trajectory, Anand Chatterjee highlighted that the brand’s expansion is driven by a deep understanding of emerging lifestyle destinations and evolving consumer expectations. He emphasised that the focus remains on creating design-forward environments, intuitive service, and immersive experiences that go beyond traditional hospitality.

With a growing portfolio that blends aesthetics, personalisation, and experience-led offerings, Planet Hotels & Resorts is positioning itself to play a significant role in shaping India’s next phase of premium hospitality growth.


ALDOVIA Resort & Convention Unveiled as Clarks Exotica Rebrands in Bengaluru

ALDOVIA Resort & Convention Unveiled as Clarks Exotica Rebrands in Bengaluru

By Hariharan U

Published on April 7, 2026

In a significant move within India’s hospitality landscape, Clarks Exotica Convention Resort & Spa in Bengaluru has officially rebranded as ALDOVIA Resort & Convention, signalling a shift towards building an independent, owner-led brand.

The transition follows the acquisition of a majority stake in Clarks Hotels & Resorts by Indian Hotels Company Limited, prompting the property to move away from brand affiliation and take full creative and operational control. Despite the change, ownership remains with the Colaco family, led by Dr. Ronald Colaco, along with Executive Directors Nigel and Randal Colaco.

Having built a strong reputation over nearly two decades, the property retains its core identity of service excellence and scale. Strategic direction continues under Vivek Kumar, with business development led by Balaji, whos e long association has shaped the resort’s growth journey.

The shift to ALDOVIA represents more than a name change. It reflects a broader transformation, one that focuses on crafting a personalised, values-driven hospitality experience. The name itself, derived from “Aldo” (wisdom) and “Via” (journey), captures the brand’s philosophy of thoughtful evolution and purposeful hospitality. The swan, chosen as its emblem, symbolises grace and tranquillity.

Speaking on the transition, CEO Balaji M said the rebranding is a natural evolution, allowing the team to build a brand that reflects its values and long-term vision while retaining the essence of what guests have come to appreciate.

Under this new identity, ALDOVIA aims to enhance guest experiences through subtle yet meaningful changes. Vice President Nilisha Ghuliani emphasised a more intuitive and personalised approach, where every interaction is designed to feel warm, thoughtful, and memorable.

As part of the transformation, select areas of the resort will undergo phased upgrades. The poolside is set to be reimagined into a Swiss Town Square-style social hub, while new dining concepts such as Mirage (Pool Café), Shogun (Pan Asian Restaurant), and Ember (Grills Restaurant) will introduce immersive culinary experiences.

Located near the city’s airport, ALDOVIA continues to position itself as a destination that blends accessibility with refined luxury. The focus now shifts towards emotional intelligence in service, authenticity in experiences, and a deeper connection with guests.

With this rebranding, ALDOVIA Resort & Convention begins a new chapter, one that builds on legacy while setting the foundation for a future-forward, independent hospitality brand.


Banyan Tree Samui Named Thailand’s Best Spa Resort for 2026

Banyan Tree Samui Named Thailand’s Best Spa Resort for 2026

By Hariharan U

Published on April 2, 2026

In a significant recognition for luxury wellness hospitality, Banyan Tree Samui has been named the “Best Spa Resort – Thailand” at the Global Spa Awards 2026, presented by The Luxury Spa Edit.

The award reflects a combination of expert panel evaluations, insights from global travel journalists and sustainability specialists, and over 85,000 public votes, reinforcing the resort’s strong positioning in the global wellness space.

At the heart of this recognition is the resort’s integrated approach to holistic wellbeing. The spa experience at Banyan Tree Samui goes beyond traditional treatments, offering a thoughtfully curated journey rooted in its “8 Pillars of Wellbeing” philosophy, focusing on rest, nourishment, mindfulness, movement, and personal growth.

A standout feature is its signature hydrotherapy facility, The Rainforest, which takes guests through a multi-sensory circuit of water jets, saunas, steam rooms, ice fountains, and vitality pools. This immersive experience has become a defining element of the resort’s wellness offering.

Speaking on the achievement, Naphasawan Badklang, Spa & Gallery Manager, credited the team’s rigorous training at the Banyan Spa & Wellbeing Academy and their commitment to delivering personalised guest experiences. Each treatment begins with a detailed consultation, followed by customised herbal oils and signature rituals that include sound healing, breathwork, and traditional techniques.

The award also coincides with the rollout of Banyan Tree Spa 2.0, an evolved concept that blends ancient Asian healing practices with modern wellness techniques. From personalised therapies to curated closing rituals featuring herbal foot cleansing and tea ceremonies, the experience is designed to create a deeper sense of relaxation and renewal.

Set against the scenic backdrop of Koh Samui’s Lamai Bay, the resort’s 88 private pool villas further enhance the sense of seclusion and calm. Complemented by curated dining experiences, wellness programmes, and nature-integrated design, the property continues to offer a sanctuary for travellers seeking both luxury and restoration.

With this recognition, Banyan Tree Samui strengthens its reputation as one of Asia’s leading wellness destinations, setting new benchmarks for immersive and experience-driven hospitality.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.