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.


Vivanta Makes a Stylish Debut in Thane with Scenic Hillside Views

Vivanta Makes a Stylish Debut in Thane with Scenic Hillside Views

By Nishang Narayan

Published on August 2, 2025

Indian Hotels Company (IHCL) has officially announced the opening of Vivanta Thane on LBS Road, marking a significant debut for the brand in one of the most dynamic urban pockets of the Mumbai Metropolitan Region (MMR).

Set against the scenic Yeoor Hills, this new 97-key hotel offers a refreshing blend of nature and modern luxury, catering to both business and leisure travellers. Strategically located with excellent access to major business corridors and transport routes, Vivanta Thane brings a fresh perspective to the city’s hospitality landscape.

Deepika Rao, Executive Vice President – New Businesses & Hotel Openings, IHCL, said,

“The opening of Vivanta Thane reflects IHCL’s strategy of expanding into key urban centres. Thane, as an immediate neighbour to Mumbai, has evolved into a major satellite city within the Mumbai Metropolitan Region.”

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Guests at Vivanta Thane can indulge in diverse culinary experiences. Mynt, the hotel’s all-day diner, offers panoramic views of the hills, while Zira, a specialty vegetarian restaurant, celebrates flavour-rich plates. For spirited evenings, Wink, the brand’s signature bar, serves expertly crafted cocktails in a lively setting. Adding a sweet touch, Swirl, a chic patisserie at the lobby level, presents colourful desserts in a playful atmosphere.

The hotel also boasts a state-of-the-art fitness centre and an infinity pool that overlooks the hills and city skyline, offering guests moments of calm and luxury. Business travellers and event planners can benefit from the hotel’s modern banqueting and meeting venues, tailored for seamless gatherings and upscale functions.

Tejas Bhoite, General Manager, Vivanta Thane, commented,

“Vivanta Thane, LBS Road captures the vibrant spirit of the city, offering guests a haven where style and substance converge. Our team is excited to welcome guests to this new landmark.”

With this launch, IHCL now operates 17 hotels in the Mumbai Metropolitan Region, including 5 currently under development, further solidifying its stronghold in western India’s hospitality circuit.


ELIVAAS and Aranayam Unveil Amayah – Goa’s First Sustainable Luxury Villa Community

ELIVAAS and Aranayam Unveil Amayah – Goa’s First Sustainable Luxury Villa Community

By Nishang Narayan

Published on August 1, 2025

In a major step toward redefining eco-conscious living in India’s favourite holiday state, ELIVAAS, a leading curator of premium vacation experiences, has joined hands with luxury villa developer Aranayam to launch Amayah—Goa’s first sustainable luxury villa community. Located in the lush neighbourhood of Assagao, Amayah blends the charm of Indo-Portuguese architecture with cutting-edge green technologies and timeless comforts.

Spread across 25,700 sq. ft., Amayah consists of nine meticulously crafted villas, including eight 3 BHKs and one 4 BHK, each thoughtfully designed with handcrafted teakwood finishes, natural lime plaster walls, and elegant balconies. These elements not only exude old-world charm but also ensure energy efficiency and climate adaptability.

At the heart of the project lies a commitment to sustainability. Amayah is one of the first villa communities in Goa to be GRIHA-certified—a prestigious green rating that ensures environmentally responsible construction and operations. The project is designed around sustainable development practices such as rainwater harvesting, solar energy systems, efficient water treatment and reuse, and eco-friendly materials.

But Amayah doesn’t just stop at responsible construction—it elevates the concept of luxury living. Each villa comes with private swimming pools, spa and sauna rooms, open-to-sky showers, private landscaped gardens, and state-of-the-art kitchens fitted with premium appliances. A mix of Portuguese tiles, terrazzo flooring, and authentic local craftsmanship create a serene, rooted aesthetic that mirrors Goa’s relaxed yet sophisticated lifestyle.

“At ELIVAAS, we’ve always believed that luxury doesn’t have to come at the cost of the planet,” says Ritwik Khare, Founder and CEO of ELIVAAS. “With Amayah, we’re creating a product that is beautiful, culturally grounded, and environmentally future-ready. We’re not just building villas; we’re curating soulful living experiences.”

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Aranayam, known for its commitment to thoughtful architecture and context-aware design, brings its deep understanding of local building styles and sustainability to this project. Varun Maheshwari, Founder of Aranayam, shares, “We believe that our homes should reflect harmony with their surroundings. Amayah is designed to be timeless—rooted in Goan heritage, but forward-thinking in function and sustainability. This collaboration with ELIVAAS has allowed us to create something truly special.”

Amayah's location in Assagao, one of Goa’s most sought-after residential areas, adds to its charm. Known for its greenery, peaceful vibe, and proximity to beaches like Vagator and Anjuna, Assagao is rapidly becoming the preferred address for those seeking both serenity and sophistication.

In an era where real estate is often viewed through the lens of returns and convenience, Amayah is a refreshing example of “luxury with purpose.” The project stands as a benchmark for regenerative tourism and sustainable living in Goa, setting a precedent for future developments in the region.

Whether as a private residence, vacation home, or investment, Amayah by ELIVAAS and Aranayam offers a chance to own a piece of Goa that not only promises elegance but also leaves a lighter footprint on the planet.


Myst by Machan Signs Resort Near UNESCO Heritage Ellora

Myst by Machan Signs Resort Near UNESCO Heritage Ellora

By Hariharan U

Published on July 31, 2025

Machan Resorts LLP, known for redefining sustainable luxury in India, is all set to open its next eco-wellness retreat under the Myst by Machan brand in Chhatrapati Sambhaji Nagar (formerly Aurangabad). With this signing, the group added its third property in Maharashtra, after Lonavala and Karjat.

The upcoming resort will span around 15 acres of forested land, offering elevated forest rooms, waterfront cottages, and luxury villas—each designed to blend in with nature while offering modern comfort. The space will also feature a wellness centre, farm-to-table dining, and versatile event venues fit for intimate weddings, offsite corporate events, and cultural gatherings.

Perfectly Located for Culture & Calm

 Just a scenic drive away via the Samruddhi Mahamarg, this location places guests at the heart of heritage and nature—close to the UNESCO-listed Ellora Caves, and within reach of other iconic sites like Shirdi, Ajanta, and Verul.

Chhatrapati Sambhaji Nagar is an ideal setting for our Myst by Machan concept. It lets us bring together eco-living and local heritage in a meaningful way”, said Rakshit Sharma, COO, Machan Resorts LLP.

Opening in 2028

 The resort is expected to open its doors in 2028, continuing the brand’s vision of building experiences that are both responsible and rejuvenating.

About Machan Resorts

 With a reputation rooted in eco-conscious hospitality, Machan Resorts LLP is best known for its treehouse retreats in Lonavala. Their Legacy Mandawa property in Rajasthan offers royal stays in a beautifully restored haveli. The group is currently expanding into Karjat, Mulshi, Pawana, Jaisalmer, and Udaipur, building a network of thoughtfully designed retreats across India.

To know more, visit www.themachan.com or follow @machanresorts on Instagram.

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