India’s hospitality sector is entering a structurally stronger phase of growth, supported by rising domestic travel, diversified demand drivers, and favourable policy momentum, according to a recent report by ICRA Limited. The agency noted that the sector is now less exposed to global disruptions compared to the pre-pandemic period, with demand increasingly driven by domestic travellers.

ICRA highlighted that the industry remains on track to post record revenues and occupancy levels in FY2026–27, even as foreign tourist arrivals remain subdued. Sustained demand, limited new supply, and the growing adoption of asset-light operating models are helping hotels maintain strong performance and profitability.

“Demand drivers now include corporate travel, weddings and social events, religious and spiritual tourism, concerts, sports, MICE activities, and leisure-led travel to Tier-2 and Tier-3 cities,” said Sruthi Thomas, Vice President & Sector Head, Corporate Ratings, ICRA Limited. “The market can now support multiple formats and price points, pushing hotel companies to diversify beyond the traditional upscale business hotel model.”

According to ICRA, demand growth continues to exceed supply expansion, strengthening pricing power for hoteliers. Revenue per available room has touched record levels, with occupancy rates in the range of 69–71 per cent and average room rates between INR 8,100–8,200 during the first nine months of FY2026, compared with Rs. 7,800–7,900 in the same period of FY2025.

The report also noted that despite short-term disruptions caused by revised flight duty norms in December 2025, the sector showed resilience. Extended stays, alternative modes of travel, and bulk wedding bookings helped cushion the impact. Occupancy levels in Q3 FY2026 stood at 76–78 per cent, underlining strong underlying demand.

Thomas pointed to the increasing preference for asset-light models such as management and franchise contracts, which “generate fee-based, high-margin income, require minimal capital, and enhance returns on investment.” These models enable hotel operators to scale faster while maintaining financial discipline and brand standards. She added, “Owned assets continue to anchor brand prestige, especially in prime locations. A mixed ownership strategy, retaining core assets while franchising or managing growth assets, is now emerging as the preferred model.”

Looking ahead, ICRA expects premium hotel occupancy to remain between 72–74 per cent in FY2026, with average room rates rising to INR 8,200–8,500. Growth will continue to be supported by business travel, weddings, MICE activities, and leisure tourism.

ICRA also anticipates that the upcoming Union Budget will further support the hospitality sector through continued focus on tourism, infrastructure development, and financing incentives. With demand remaining strong and supply additions limited, India’s hotel industry is well placed for another year of record performance.

Hyatt Regency Dehradun Resort and Spa has announced the appointment of Apurav Bhatia as its new Assistant Director of Food & Beverage, bringing on board a hospitality professional with over a decade of experience across luxury food and beverage operations.

Bhatia’s career has been shaped by hands-on leadership across diverse premium hospitality environments, where he has played a key role in refining outlet operations, developing beverage-led concepts, and managing the complexities of large-scale banqueting. Known for balancing operational discipline with creative expression, his approach focuses on delivering consistent, elevated guest experiences that reflect both brand standards and authentic hospitality.

In his new role, Bhatia will oversee the full spectrum of food and beverage operations at the resort, including restaurant outlets, bars, in-room dining, and events. His mandate includes strengthening guest engagement through thoughtful menu curation, service refinement, and the integration of local culinary narratives presented through contemporary formats.

Drawing inspiration from Uttarakhand’s rich culinary heritage, Bhatia plans to incorporate regional ingredients and flavours into offerings that celebrate the destination while appealing to a global audience. His vision also extends to the resort’s banqueting and wedding segments, where a strong focus on customisation and seamless execution will define each celebration.

Bhatia is also keen to introduce wellness-driven dining concepts, mindful beverage programmes, and sustainable practices aligned with evolving guest expectations and Hyatt’s global standards. Strategic menu planning, seasonal sourcing, and cost-conscious innovation will guide his approach, alongside strict hygiene protocols and continuous team development to uphold service excellence across all touchpoints.

Commenting on his appointment, Apurav Bhatia said, “I am delighted to join Hyatt Regency Dehradun Resort and Spa and look forward to creating elevated dining experiences that reflect the destination while upholding Hyatt’s global standards of excellence.”

The Fern Hotels & Resorts has announced the launch of Nanak Niwas Beacon New Delhi, Paharganj, marking another step in strengthening its footprint across the National Capital Region. The new addition reflects the group’s focus on expanding well-located urban properties that cater to the growing demand from both business and leisure travellers visiting the city.

Strategically located in Paharganj, the hotel offers convenient access to major transport hubs and key commercial areas, making it a practical choice for guests looking for comfort and ease of travel in central New Delhi. The property has been designed to meet the expectations of modern travellers who value efficient service, thoughtful amenities and a balanced midscale experience.

Commenting on the launch, Suhail Kannampilly, managing director, The Fern Hotels & Resorts, said, “New Delhi continues to be a critical market for hospitality, driven by consistent demand from business travellers, tourists and event-led visits. Nanak Niwas Beacon New Delhi, Paharganj has been developed to address this demand with a balanced midscale offering that focuses on comfort, operational efficiency and sustainability. The hotel reflects our commitment to creating well-connected urban properties that deliver reliable guest experiences while remaining environmentally responsible.”

Sharing his views on the partnership, Amandeep Singh Anand & Paharganj Nanak Niwas, said, “We are pleased to partner with The Fern Hotels & Resorts for the launch of Nanak Niwas Beacon New Delhi, Paharganj. This association brings together our local understanding of the market with The Fern Hotels & Resort’s operational expertise and commitment to quality hospitality. We believe the hotel is well-positioned to meet the evolving needs of travellers visiting the city.”

Nanak Niwas Beacon New Delhi, Paharganj features 45 well-appointed rooms equipped with modern facilities, including high-speed Wi-Fi and eco-friendly amenities, in line with The Fern Hotels & Resorts’ sustainability-led approach.

The hotel also offers dining options through Aroma, a multi-cuisine restaurant serving a mix of local and global flavours in a refined setting. In addition, guests can access 24x7 in-room dining, with a menu that includes snacks, full meals, beverages and options for children, providing added convenience for resident guests.

With this launch, The Fern Hotels & Resorts continues to strengthen its presence in key city markets while offering travellers reliable, comfortable and environmentally responsible hospitality experiences.