New Delhi, 9 June (IANS). The income of India’s hospitality sector is estimated to increase by 6-8 percent in FY 26. This information was given in the ICRA report released on Monday.
The report stated that the income growth of the hospitality sector is being seen when the income growth rate of the sector has been in double digits for about three years.
The ICRA estimates that in the financial year 26, the premium hotels across India will have 72-74 percent, which is slightly higher than the 70-72 percent level seen in FY 24 and FY25.
The average room fare (ARR) for premium hotels in FY 26 is estimated to be increased to Rs 8,200-8,500, compared to Rs 8,000-8,200 in FY 2025. The reason for this is the reduction in supply and renovation and upgradation work in many hotels.
Jitin Makkad, Senior Vice President of ICRA Limited, said, “The growth of India’s hospitality sector is estimated to be normal at 6-8 percent in FY 2026 after a strong demand for three years of domestic travel, meetings, conferences and exhibitions.”
He further said, “Cancellation has increased due to increasing terrorist attacks in April 2025 and uncertainty in North and West India in May 2025, but its effect has been largely temporary and local. The sensing has also improved after recent weeks decreased conflict.”
The report stated that the arrival of foreign tourists in India is expected to decrease in the next few months after the terrorist attacks, but after that it is expected to improve gradually. However, domestic tourism has been the driver of the main demand till now and is likely to remain the same in the near future.
-IANS
ABS/