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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.
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By Hariharan U
Published on October 25, 2026
Summit Hotels & Resorts is set to expand its Signature Collection with a 17-villa retreat in Lachung, North Sikkim, scheduled to open in December 2026. The upcoming property will strengthen the company's premium hospitality portfolio in the Eastern Himalayas, with an emphasis on local architecture, cultural experiences and the region's natural landscape.
Located at an altitude of approximately 8,600 feet, Lachung is around 118 km from Gangtok and serves as a gateway to destinations including Yumthang Valley, Zero Point and Katao. The retreat will feature 17 villas inspired by traditional Sikkimese architecture, reflecting the area's cultural character and mountain setting.
Beyond accommodation, the property is expected to offer experiences that encourage guests to explore North Sikkim beyond conventional sightseeing. Planned activities include guided village walks, opportunities to discover Bhutia traditions and cuisine, visits to nearby orchards and monasteries, and excursions to alpine valleys. Seasonal experiences such as rhododendron viewing, winter snow excursions and stargazing are also being considered, subject to local conditions.
Commenting on the development, Sumit Mitruka, CEO, Summit Hotels & Resorts, said, “North Sikkim has considerable potential to develop beyond conventional sightseeing-led tourism. Lachung is already an important stop on the Yumthang and Zero Point circuit, but we believe there is an opportunity to encourage travellers to spend more time in the destination itself. With this retreat, we want to introduce a premium stay experience that draws on the region's architecture, culture and natural surroundings. We also see opportunities to work with local communities through employment, sourcing and destination experiences as tourism develops.”
The project comes amid renewed tourism interest in North Sikkim, supported by improved accessibility along the Lachung–Yumthang–Zero Point circuit. Known for its Himalayan scenery, rhododendron forests and traditional Bhutia settlements, Lachung offers opportunities to develop longer, nature-focused stays alongside established sightseeing itineraries.
The retreat will join Summit's Signature Collection, which includes Summit Norbu Ghang in Gangtok and Summit Rungkhung Village Resort in Dirang, Arunachal Pradesh. The collection forms part of the company's wider strategy to develop premium, destination-focused hospitality across the Eastern Himalayas and other leisure markets in India.
With the Lachung project, Summit is looking to combine premium accommodation with local culture and nature-based experiences, while creating opportunities for community participation as tourism in North Sikkim evolves
Published on October 22, 2026
Looking for a peaceful escape this Dussehra? Cintacor Island Resort in Karwar, Karnataka, offers a private island getaway where guests can enjoy the beach, explore the sea and unwind amid nature. Spread across a 33-acre private island along Karnataka's lesser-explored coastline, the resort offers an alternative to crowded holiday destinations for the festive long weekend from 20–22 October 2026.
Surrounded by the Arabian Sea, the resort brings together relaxation, outdoor activities and scenic coastal views. Guests can spend their days at the private beach, enjoy the swimming pool or explore the island's NatureLab, making it a refreshing choice for travellers looking to slow down and enjoy a few days away from their usual routine.
For those who want more than a relaxed beach holiday, Cintacor Island offers several experiences on land and at sea. Guests can try kayaking and fishing or head out on dolphin cruises to explore the surrounding waters. Those looking to unwind can visit the private Kurmasana Spa, which offers a peaceful setting to relax during their stay.
One of the island's highlights is Nemo's Deck, located at its highest point. Offering panoramic views of the Arabian Sea, it provides a beautiful spot to watch the sunset. As the day winds down, guests can head to Jolly Rogers for a leisurely meal while enjoying the island's relaxed atmosphere.
With its private beach, sea-facing experiences and natural surroundings, Cintacor Island Resort offers a different way to celebrate the Dussehra long weekend. Whether travellers are looking for a quiet break, a little adventure or simply time by the sea, the island provides an opportunity to step away from busy holiday destinations and enjoy a coastal retreat.
For those planning a festive getaway, Cintacor Island Resort, Karwar, presents an inviting option to spend the long weekend surrounded by nature, with the Arabian Sea setting the scene for a memorable holiday.
Published on October 20, 2026
Sayaji Raipur is bringing the festive season to the table with two special dining experiences this October, combining a Dussehra celebration at Cravings with a themed Halloween evening at its rooftop destination, Horizon.
Designed around food, festivities and social gatherings, the hotel's October calendar offers guests opportunities to celebrate traditional occasions and enjoy a contemporary seasonal experience with family and friends.
On October 20, 2026, Cravings at Sayaji Raipur will mark Dussehra with a special festive dining experience featuring traditional flavours and a celebratory atmosphere.
Guests can avail themselves of a 2+1 offer during lunch, providing an opportunity for families and groups to gather over a festive meal.
The celebrations will continue on October 31, 2026, with a themed Halloween Night at Horizon, Sayaji Raipur's rooftop destination.
The evening will feature Halloween-inspired food and drinks, themed décor and an entertaining ambience, bringing a seasonal twist to the rooftop dining experience.
Guests can also enjoy 15% off the à la carte menu, while drinks will be available at MRP.
Together, the two events reflect Sayaji Raipur's approach to seasonal dining, bringing traditional festivities and contemporary themed celebrations into its October programme.
Dussehra at Cravings
Date: October 20, 2026
Offer: 2+1 during lunch
Halloween Night at Horizon
Date: October 31, 2026
Offer: 15% off the à la carte menu
Drinks: Available at MRP
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