Indian Hotels Poised for Revenue Growth and ARR Surge in FY2025: ICRA Forecast

Indian Hotels Poised for Revenue Growth and ARR Surge in FY2025: ICRA Forecast

By Author

Published on February 23, 2024

The Indian hotel industry is on the brink of significant growth, with ICRA forecasting a revenue increase of 7-9% in FY2025, building on the robust 14-16% growth anticipated in FY2024. This optimistic outlook is fueled by a combination of factors, including sustained domestic travel momentum, an uptick in meetings, incentives, conferences, and exhibitions (MICE) demand, a resurgence in weddings and business travel, and the burgeoning interest in spiritual tourism and tier-II city destinations.

ICRA's analysis points to a sustained period of high occupancy for pan-India premium hotels, expected to maintain decadal highs of 70-72% in both FY2024 and FY2025, after a recovery to 68-70% in FY2023. Concurrently, Average Room Rates (ARRs) are on an upward trajectory, predicted to increase from INR 7,200-7,400 in FY2024 to INR 7,800-8,000 in FY2025. This rise in ARRs is bringing the industry closer to the FY2008 peak levels, albeit at an 8-12% discount in FY2024, with a convergence expected in FY2025.

Despite the general trend, certain hotels and locations have already surpassed the FY2008 peak ARR figures in FY2024, indicating a spike beyond the average increases. This surge is supported by a healthy demand outlook, driven by improvements in infrastructure, air connectivity, demographic factors, and the growth of large-scale MICE events facilitated by new convention centers.

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The Indian hotel sector's recovery and growth are bolstered by several ongoing and upcoming renovations, refurbishments, and upgrades across the industry, further enhancing ARRs. The sustained interest in domestic leisure travel and the slow but steady recovery of Foreign Tourist Arrivals (FTA) – contingent on the global macroeconomic climate – are additional factors contributing to the industry's positive trajectory.

Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA Limited, highlighted the critical role of domestic tourism as the primary demand driver in FY2024 and its expected continuation in the near term. Despite the wane of the revenge travel phenomenon, leisure travel remains a steadfast contributor to the industry's recovery path. However, the industry's full potential is somewhat hampered by the lingering challenges in the supply chain.

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Looking ahead, the Indian hotel industry's revenue growth is expected to be complemented by a favorable supply situation, healthy demand in the MICE segment, and the strategic expansion of larger players through management contracts and operating leases. This confluence of factors, coupled with the uptick in earnings and cash flows, is poised to support a stronger capital structure and improved debt metrics beyond pre-Covid levels in FY2024 and FY2025.

As the Indian hotel industry navigates through this period of recovery and growth, the focus on enhancing guest experiences, leveraging domestic tourism, and capitalizing on the strategic expansion opportunities will be key to sustaining the positive momentum.

For more detailed insights and analysis on the Indian hotel industry's outlook, visit ICRA's official website.


Royal Caribbean Group raises dividend by 33% to $1 per share

Royal Caribbean Group raises dividend by 33% to $1 per share

By Manu Vardhan Kannan

Published on September 14, 2025

Royal Caribbean Group (NYSE: RCL) has announced a significant increase in its shareholder returns, declaring a 33% hike in its quarterly dividend. The company’s Board of Directors approved a dividend of $1.00 per common share, payable on October 13, 2025, to shareholders of record at the close of business on September 25, 2025.

Jason Liberty, President and CEO of Royal Caribbean Group, said the move underscores the company’s confidence in its performance and long-term growth strategy. “Today’s dividend increase reflects both the strength of our performance and our commitment to return capital to shareholders. This increase in dividend, along with our ongoing share repurchase program, highlights our balanced approach to capital allocation, returning value to shareholders while funding future growth,” Liberty stated.

Royal Caribbean Group is a global leader in the vacation industry, operating a fleet of 68 ships across five brands that serve millions of guests annually. Its portfolio includes Royal Caribbean International, Celebrity Cruises, and Silversea, as well as land-based experiences such as Perfect Day at CocoCay and the Royal Beach Club collection. The company also holds a 50% joint venture in TUI Cruises, which manages brands like Mein Schiff and Hapag-Lloyd Cruises.

With a reputation for innovation and guest-focused experiences, Royal Caribbean Group continues to expand its global footprint while maintaining its commitment to responsible and sustainable growth.


Apeejay Surrendra Park Hotels Reports Rs 13 Crore Net Profit in Q1 FY26

Apeejay Surrendra Park Hotels Reports Rs 13 Crore Net Profit in Q1 FY26

By Manu Vardhan Kannan

Published on August 18, 2025

Apeejay Surrendra Park Hotels Limited (ASPHL) announced its financial results for Q1 FY26, recording a net profit of Rs 13 crore. Revenue from operations stood at Rs 154 crore, a 14% increase year-on-year, while operating EBITDA grew 16% YoY to Rs 45 crore. The company maintained an industry-leading occupancy of 92%, reaffirming its leadership in the hospitality sector.

ASPHL’s growth is fueled by expansion into Tier 2 and Tier 3 markets. The company recently signed an MoU to acquire and manage four leisure properties in Goa, Manali, Shimla, and Dharamshala, adding 138 rooms under its brand. These steps align with ASPHL’s strategy to broaden its presence in high-potential tourism destinations and double its key count to 5,750 over the next five years.

Flurys, ASPHL’s iconic bakery and confectionery brand, now operates 102 outlets nationwide, reflecting the company’s focus on expanding its market presence while integrating modern amenities with rich cultural heritage.

Commenting on the performance, Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels, said,

"We have delivered an extraordinary and best-ever Q1, setting a strong momentum for the year ahead. With topline growth of 14% and EBITDA growth of 16%, we recorded India’s highest occupancy of 92% and maintained leadership in RevPAR in the upper-upscale segment. ARR improved by 13% and RevPAR increased by 12%. With nearly 600 new rooms added, including a 41% rise in our asset-light model, and nationwide Flurys rollout, we are poised to scale faster, enhance margins, and deliver exceptional shareholder value."

ASPHL’s strong performance in Q1 FY26 underscores its strategic focus on market expansion, operational excellence, and premium guest experiences.


Marriott Announces Dividend and Expands Share Buyback Plan

Marriott Announces Dividend and Expands Share Buyback Plan

By Manu Vardhan Kannan

Published on August 10, 2025

Marriott International, Inc. has declared a quarterly cash dividend of 67 cents per share on its common stock, reaffirming its commitment to delivering shareholder value. The dividend will be paid on September 30, 2025, to shareholders who are on record as of August 21, 2025.

Alongside the dividend announcement, the hospitality giant also revealed an expansion of its share repurchase program. The board of directors has authorized the repurchase of an additional 25 million shares of its Class A common stock. This comes in addition to the approximately 7.4 million shares that were still available under previous authorizations as of July 30, 2025.

Marriott has already bought back 6.4 million shares this year, amounting to $1.7 billion. These moves reflect the company’s continued confidence in its financial stability and long-term performance, aiming to strengthen shareholder value through strategic capital allocation.

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