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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.
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.
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.
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By Hariharan U
Published on June 21, 2026
Papa Johns India marked Father’s Day with a unique and interactive celebration, hosting a special pizza-making experience for fathers and their children at its Hennur and Kasturi Nagar outlets in Bengaluru on June 21, 2026.
Designed to encourage meaningful family bonding, the event brought together registered father-child duos for a hands-on culinary session where participants created their own pizzas under the guidance of Papa Johns chefs. The initiative aimed to transform a traditional dining experience into an engaging activity centred around togetherness and shared memories.
During the event, participants wore branded aprons and caps while learning the art of pizza-making from scratch. The experience also featured Father’s Day-themed games, instant photography sessions, Polaroid keepsakes, and interactive activities designed to make the celebration memorable for families.
Commenting on the initiative, Prashant Mehta, Director of Papa Johns India, said the brand views Father’s Day as an opportunity to celebrate family connections and create meaningful experiences beyond dining. He noted that the event was designed to bring families together through teamwork, creativity, and shared moments in the kitchen.
The sessions concluded with pizza tasting, trivia activities, and group photographs, allowing participants to enjoy the creations they made together.
Through this experience-led activation, Papa Johns India continues to strengthen customer engagement while showcasing the craftsmanship, quality ingredients, and preparation techniques that define its pizzas. The initiative reflects the brand’s growing focus on creating memorable in-store experiences that connect customers with the food and the people they share it with.
Operated in India by PJP Foods India Private Limited under the Ambrosia QSR platform, Papa Johns India continues to expand its presence through dine-in, takeaway, and delivery formats while staying true to its global promise of “Better Ingredients. Better Pizza.”
By Manu Vardhan Kannan
Published on June 14, 2026
Summit Hotels & Resorts has started FY2026-27 on a strong note, reporting nearly 40% growth in business during April and May. The company attributes the performance to continued demand for leisure travel in the Eastern Himalayas and the growing preference among travellers for established regional hospitality brands.
During the first two months of the financial year, the hospitality group sold more than 37,000 room nights, with occupancy across its portfolio reaching 78.9%. Average room rates also crossed ₹6,000, highlighting stronger pricing power across several key destinations.
The growth comes despite a temporary slowdown in travel activity in parts of eastern India during the West Bengal Assembly election period. According to the company, destinations across Sikkim and the Darjeeling Hills were the strongest contributors to performance, supported by repeat guests and rising demand for premium mountain getaways.
Commenting on the performance, Sumit Mitruka, CEO, Summit Hotels & Resorts, said, "We entered the year expecting healthy demand, but the pace of bookings has been stronger than anticipated. What stands out is not just the occupancy but the ability of travellers to continue choosing these destinations despite temporary disruptions. The appetite for experiential leisure travel remains strong, and we are seeing that translate into both room revenue and higher spending within our hotels."
Alongside room revenues, the company also reported healthy growth in food and beverage sales during the period. Guest review scores remained among the highest across its operating markets, reflecting strong customer satisfaction levels.
Building on this momentum, Summit Hotels is now expanding its business model beyond its owned and managed properties in the Eastern Himalayas. The company is actively seeking partnerships with independent hotels, boutique resorts, heritage properties, wildlife lodges, and spiritual retreat destinations across India.
The initiative is designed for hotel owners looking to benefit from organised distribution channels and professional revenue management while retaining ownership and operational control of their properties.
Unlike conventional affiliation models that often require significant upfront investments, Summit's partnership approach focuses on shared growth. Partner properties can maintain their individual identity while gaining access to the company's central reservation system, revenue management expertise, digital marketing support, technology platforms, and hospitality manpower network.
Having completed 18 years in the hospitality industry, Summit believes significant opportunities exist within India's large independent hotel sector, where many properties have strong local appeal but limited access to organised brand support and distribution systems.
With booking momentum continuing into June and advance reservations already nearing last year's levels, the company remains optimistic about sustained demand across leisure and destination travel markets in the coming quarters.
Published on June 12, 2026
Suba Hotels Limited (NSE – SME: SUBAHOTELS) has announced its audited financial results for the year ended March 31, 2026, reporting its strongest-ever annual performance alongside significant expansion across its hotel portfolio.
The company’s total revenue rose to ₹115.89 crore in FY26, marking a 45% year-on-year growth. EBITDA increased by 13% to ₹26.82 crore, while Profit After Tax (PAT) stood at ₹18.01 crore, reflecting a 19% rise compared to FY25.
Commenting on the performance, Managing Director Mansur Mehta said FY26 has been a landmark year for the company, driven by strong execution and expansion across markets. Suba Hotels expanded its presence to over 102 operational hotels, 4,660+ keys, and 73 destinations during the year.
He highlighted that one of the company’s key strengths lies in its ability to operate across all five hospitality business models management contracts, revenue sharing, franchising, asset ownership, and hybrid structures, making Suba Hotels one of the few hospitality players in India with such a diversified operational framework.
“This flexibility allows us to partner with hotel owners effectively and accelerate expansion across segments,” he said.
CEO Mubeen Mehta noted that the scale achieved in FY26 reflects the strength of the company’s operating platform and execution capabilities. He added that revenue growth was supported by network expansion and improved business volumes across brands.
He also pointed out that EBITDA and PAT margins were impacted due to changes in the GST framework, which led to the loss of input tax credit benefits on certain operating expenses, increasing the overall cost base.
Looking ahead, the company plans to continue expanding through asset-light models, improving operational efficiency, and strengthening its presence in high-growth markets. With a strong pipeline and over 100 hotels already operational, Suba Hotels remains confident of sustaining its growth trajectory.
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