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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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Published on April 21, 2026
Four Seasons Hotel Mumbai has unveiled ‘Constellar’, the official name and identity of its expansive 10,000-square-foot ballroom facility. The announcement adds a new layer of meaning to the space, bringing together thoughtful design, symbolism, and a narrative that reflects the hotel’s architectural style and its legacy of refined hospitality.
Introduced earlier this year, the ballroom has already positioned itself as one of Mumbai’s most sophisticated venues for weddings, celebrations, and corporate gatherings. With the introduction of ‘Constellar’, the space now carries a strong visual and conceptual identity, giving it a deeper presence.
The name ‘Constellar’ takes inspiration from constellations, symbolising connection, brilliance, and timeless beauty. This idea is reflected in the logo, which features a four-circle icon drawn from the ballroom’s architectural detailing, especially the circular patterns seen at the grand entrance. These elements come together to form a balanced and elegant motif, linking the interiors with the visual identity. A subtle star formed within the design further connects to the theme of constellations, while the four circles also represent the Four Seasons legacy, making the brand an integral part of the design story.
“Constellar, inspired by constellations, redefines how we envision celebrations coming together with intention, beauty, and meaning. With Constellar, we have given our ballroom a distinct character rooted in contemporary design, advanced technology, culinary craftsmanship, and a passionate team. It is ultimately brought to life by our esteemed guests, who make each celebration unique and memorable,” shares Nitesh Gandhi, General Manager, Four Seasons Hotels Mumbai.
Located in Worli, the 10,000-square-foot facility brings together scale and elegance. It begins with a 500-square-foot private arrival foyer that opens into a 1,300-square-foot pre-function area, leading to a 7,000-square-foot banqueting space. At its centre is a 5,700-square-foot pillarless hall with a 19-foot ceiling, designed to host large gatherings with ease. The interiors follow a modern and contemporary style, while features such as a 1,000-square-foot LED wall, digital signage, and modular setups offer flexibility for different event formats. Seamless connectivity to The Great Room ensures smooth transitions for weddings, soirées, and large-scale launches.
Every event here is shaped by Four Season’s approach to personalised service, supported by dedicated specialists and attention to detail. With ‘Constellar’, the ballroom moves beyond just a venue, offering a space where design, technology, and meaningful experiences come together.
By Hariharan U
Published on April 20, 2026
Lemon Tree Hotels Limited has announced the signing of a new property in Garudeshwar, further strengthening its footprint in Gujarat’s growing tourism and pilgrimage-driven markets.
With this addition, the company’s portfolio in the state will expand to 32 properties, including 11 operational and 21 upcoming hotels. The move reflects the brand’s strategy of building scale in high-growth destinations supported by strong travel demand.
The upcoming Lemon Tree Hotel Garudeshwar will feature 90 rooms along with a restaurant, banquet hall, and meeting facilities. Recreational amenities such as a swimming pool, spa, and fitness centre are also part of the development.
The hotel will be managed by Carnation Hotels Private Limited, the management arm of Lemon Tree Hotels.
Gujarat continues to witness rising tourist inflow, driven by landmark attractions like the Statue of Unity and growing interest in spiritual and cultural travel. Garudeshwar is increasingly emerging as a key destination within this ecosystem, benefiting from improved infrastructure and proximity to major tourist circuits.
The property is well connected by road and is located approximately 85 km from Vadodara International Airport and around 5 km from Ekta Nagar Railway Station, offering convenient access for travellers.
Commenting on the signing, Neelendra Singh, Managing Director of Lemon Tree Hotels, said that "Destinations like Garudeshwar are becoming important nodes in India’s expanding tourism landscape". He noted that increasing visitor flows are driving demand for quality branded hospitality, and the company remains focused on tapping such opportunities to strengthen its regional presence.
SAMHI Hotels Limited has signed an agreement with Ingka Centres India Private Limited to develop an upscale hotel in Noida, marking a significant addition to the region’s evolving hospitality landscape.
The project will be developed within Ingka Centres’ upcoming mixed-use development, spread across approximately 2.5 million square feet. Envisioned as a marquee project, it is expected to enhance Noida’s skyline while strengthening its position as a key commercial and hospitality hub in the Delhi NCR region.
The planned hotel will feature around 162 rooms and will be integrated into Ingka Centres’ “Meeting Places” concept—a retail-led ecosystem that combines shopping, leisure, and community-driven experiences. The development also aims to support local businesses and create dynamic workspaces, positioning itself as a modern urban destination.
This collaboration brings together SAMHI’s institutional operating platform and Ingka Centres’ global development expertise. The partnership aligns with SAMHI’s strategy of working with leading institutional organisations while continuing to expand through a capital-efficient model.
Located within a high-quality mixed-use environment, the hotel is expected to benefit from strong captive demand and high visibility. The project will be executed under SAMHI’s long-term variable lease model, allowing for alignment of interests while maintaining a capital-light approach.
Under the agreement, Ingka Centres will lease the building structure, including façade and high-side engineering, while SAMHI will invest in the interior fit-outs. The hotel will be operated under an international brand, which is yet to be announced.
Commenting on the development, Ashish Jakhanwala, Chairman and Managing Director of SAMHI Hotels, said the partnership marks an important step in scaling operations in the National Capital Region. He highlighted the project’s strong demand fundamentals and expressed confidence in delivering a landmark hospitality asset in collaboration with Ingka Centres.
Giovanni Princiotta Cariddi, Country Manager India at Ingka Centres, said the collaboration reflects the company’s vision of building integrated spaces where people can live, work, shop, and stay. He added that the inclusion of a high-quality hospitality offering will enhance the overall experience of the destination.
The project further strengthens SAMHI’s presence in the Delhi NCR region, where it already operates properties such as Hyatt Place Gurgaon, Holiday Inn Express Gurgaon, and Holiday Inn Express Greater Noida.
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