Hospitality sector: ICRA projects 6% growth in revenue; outlook revised to ‘stable’

India’s hospitality sector is poised for steady growth, projecting a 6-8% revenue increase in FY2026, according to ICRA. While revising its outlook to ‘Stable,’ ICRA anticipates strong pan-India occupancy in premium hotels, reaching 72-74%. Average room rates are expected to rise to ₹8,200-₹8,500, fueled by limited supply and ongoing renovations.