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.

image

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.

image

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.


Ramee Group Announces 70-Key Sea-View Resort in Dapoli, Maharashtra

Ramee Group Announces 70-Key Sea-View Resort in Dapoli, Maharashtra

By Hariharan U

Published on October 27, 2026

Ramee Group of Hotels has announced a new 70-key resort in Dapoli, Maharashtra, expanding its leisure portfolio with a coastal property featuring sea-view accommodation, wellness amenities, dining facilities and dedicated spaces for destination weddings and corporate gatherings.

The upcoming property will comprise premium rooms and serviced apartments, with every guestroom offering panoramic views of the Arabian Sea. Located in the Konkan coastal town of Dapoli, the resort is positioned to attract leisure travellers from Mumbai, Pune, Nashik and surrounding urban centres seeking weekend escapes.

Commenting on the announcement, Saurabh Gahoi, Senior Vice President – India, Ramee Group of Hotels, said the group's expansion strategy focuses on delivering immersive hospitality experiences rooted in local character.

“Dapoli is rapidly emerging as India's next prominent weekend getaway, strategically serving major urban clusters including Mumbai, Pune, Nashik, and surrounding regions. The addition of the Dapoli property marks an exciting milestone in our resort portfolio. By offering sprawling sea views from every room and comfortable, thoughtfully designed stays, we are creating a unique sanctuary for guests,” he said.

The project is being developed in partnership with Agatsya Hospitality, a subsidiary of Phatak Developers. The collaboration aims to strengthen the region's hospitality offering while supporting the development of Dapoli as a coastal leisure destination.

Akshay Phatak, Owner of Agatsya Hospitality, said, “We are delighted to partner with Ramee Group of Hotels, one of the most respected hospitality brands in the lifestyle & leisure space. Phatak Developers is committed to elevating Konkan's tourism, and this collaboration marks an exciting step toward bringing world-class hospitality to Dapoli. We have complete trust in Ramee Group's operational expertise and we look forward to setting a new benchmark for coastal hospitality together.”

Dining, Wellness and Recreation

The resort's culinary offering will centre on a flagship all-day dining restaurant serving a combination of international favourites and regional coastal cuisine, bringing local flavours into the guest experience.

Facilities will include a fully equipped gymnasium, spa, swimming pool and dedicated indoor and outdoor children's play areas. These amenities are intended to cater to families and leisure travellers seeking a combination of relaxation and recreation.

A key feature will be the property's indoor and outdoor banqueting spaces, designed to accommodate corporate retreats, social gatherings and large-scale celebrations. The facilities are expected to support demand for destination weddings and event-led travel in the Konkan region.

With its combination of sea-view accommodation, wellness facilities and event spaces, the Dapoli resort will add to Ramee Group's leisure portfolio while contributing to the region's evolving hospitality landscape.

About Ramee Group of Hotels

Founded in 1985 by Raj Shetty, Ramee Group of Hotels, Resorts & Apartments is an international hospitality group with a presence across India and the Middle East. Its portfolio caters to corporate and leisure travellers through accommodation, dining concepts and lifestyle-oriented hospitality offerings.


IHG Signs Holiday Inn Raipur, Expanding Presence in Chhattisgarh

IHG Signs Holiday Inn Raipur, Expanding Presence in Chhattisgarh

By Hariharan U

Published on October 27, 2026

IHG Hotels & Resorts has signed a management agreement with Entry Point Hotels & Resorts Private Limited to develop Holiday Inn Raipur in Naya Raipur, strengthening its presence in Chhattisgarh's growing administrative and commercial market. The hotel is scheduled to open in the first quarter of 2031.

The signing reflects IHG's strategy of expanding its portfolio across India's emerging business and travel destinations, where growing commercial activity, infrastructure development and institutional demand are creating opportunities for branded hospitality.

Naya Raipur, also known as Nava Raipur Atal Nagar, is Chhattisgarh's planned capital and an emerging administrative and commercial centre. The city's development is supported by government institutions, public sector organisations, educational establishments and expanding commercial infrastructure.

Holiday Inn Raipur will be located in Sector 24, Naya Raipur, with access to key government complexes, including Mantralaya and Vidhan Sabha. Its proximity to Swami Vivekananda Airport is expected to support travel by government delegations, corporate guests and other visitors.

The wider Raipur market is also evolving beyond its traditional industrial base, with activity across education, information technology, infrastructure and lifestyle developments contributing to its growth as a commercial destination. These developments are expected to support demand for quality accommodation across business, government, events and leisure segments.

156 Rooms and Dedicated Meeting Facilities

Holiday Inn Raipur will feature 156 rooms and suites, including 16 suites, alongside three dining venues. The planned food and beverage facilities comprise a 117-seat all-day dining restaurant, a 40-seat bar and a 40-seat lobby lounge.

The hotel will also offer approximately 942 square metres of meeting and event space across four venues. The facilities will include a divisible ballroom spanning 715 square metres, positioning the property to accommodate conferences, corporate meetings, social gatherings and other events.

Additional amenities are planned to include a swimming pool, fitness centre and parking. IHG noted that the proposed facilities remain indicative and will be subject to design development and brand standards.

Commenting on the signing, Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, said, “We are delighted to partner with Entry Point Hotels & Resorts Private Limited to bring Holiday Inn to Naya Raipur. As the city continues to develop as a key administrative and commercial centre, the signing presents an opportunity to introduce one of our most recognised brands to a market with diverse travel needs. Holiday Inn Raipur adds to our growing presence across India and reflects our focus on taking our brands to destinations where we see long-term potential.”

Arun Kumar Goyal of Entry Point Hotels & Resorts Private Limited said the partnership combines Holiday Inn's global brand recognition with IHG's hospitality expertise. He added that the project aims to introduce an international hospitality experience while responding to the needs of Naya Raipur's expanding visitor base.

Holiday Inn's Global Hospitality Platform

The hotel will incorporate Holiday Inn's Open Lobby concept, providing spaces where guests can work, meet and relax alongside the property's dining, meeting and leisure facilities.

As part of IHG Hotels & Resorts, the property is also expected to benefit from the group's global distribution network, digital platforms and IHG One Rewards loyalty programme, connecting it with a wider international customer base.

The signing adds to IHG's expansion across India, where the company continues to pursue opportunities in destinations with long-term potential for corporate travel, government activity, events and leisure demand.

With its planned 2031 opening, Holiday Inn Raipur is set to add internationally branded accommodation and meeting infrastructure to Naya Raipur's developing hospitality landscape.


Black Rock Hotels & Resorts Plans 900-Room Expansion, Enters Hotel Ownership

Black Rock Hotels & Resorts Plans 900-Room Expansion, Enters Hotel Ownership

By Hariharan U

Published on October 26, 2026

Black Rock Hotels & Resorts has announced an expansion pipeline of approximately 900 rooms, marking its entry into hotel ownership with a 241-key property in Udaipur and extending its development footprint into Uttarakhand and Uttar Pradesh.

The Rajasthan-based hospitality group currently operates seven hotels with approximately 950 rooms and is targeting six additional hotel openings through 2027. The proposed additions are expected to take its total inventory close to 2,000 rooms, subject to development progress and opening schedules.

The centrepiece of the expansion is Kingsbury, a 241-room hotel under development in Udaipur. The project will mark Black Rock's transition from third-party hotel management into hotel ownership, introducing an asset-led growth model alongside its existing management partnerships.

Located alongside a lake and surrounded by hills, Kingsbury is scheduled to begin operations in March 2027, initially with approximately 160 rooms. The property is being developed with substantial infrastructure for destination weddings, conferences and large social gatherings.

Planned facilities include two ballrooms measuring approximately 4,000 sq. ft. and 14,000 sq. ft., an 11,000 sq. ft. courtyard, a 6,000 sq. ft. pool deck and a 10,000 sq. ft. rooftop event space. Three lakeside venues and five garden spaces ranging from approximately 10,000 to 50,000 sq. ft. will further expand its event-hosting capabilities.

Beyond Rajasthan, Black Rock has signed two hotel projects in Jim Corbett, Uttarakhand, comprising 115 and 135 rooms, respectively. Both properties have indicated opening timelines of October 2027. The company has also signed a hotel project in Vrindavan, Uttar Pradesh, extending its presence into another leisure and pilgrimage destination.

image

Commenting on the expansion, Anshul Bhargava, Founder and Chairman, Black Rock Hotels & Resorts, said, “We have built our business around operating hotels where weddings, conferences and leisure contribute substantially to revenue. Our next phase is about taking that experience into new markets while also developing assets of our own. Udaipur will be an important milestone because we have been able to plan the property around the operational requirements of these segments. With a sizeable pipeline ahead, we are moving towards a larger, geographically diversified portfolio while remaining focused on commercial viability and operating performance.”

Black Rock's existing business model is based on revenue-sharing arrangements with property owners. Under this approach, the company manages staffing, operating expenditure and day-to-day hotel operations, while property owners receive an agreed share of revenue.

The addition of owned assets introduces a second growth model, enabling the group to participate directly in hotel development while continuing to expand through partnerships with independent property owners.

With its upcoming projects spanning Udaipur, Jim Corbett and Vrindavan, Black Rock is positioning itself for a broader role as a hospitality owner-operator, with a focus on destination resorts, weddings, meetings and conferences, and leisure-led markets.

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.