New Delhi, Jan. 14 -- The Indian hospitality industry is expected to sustain its revenue growth in FY2026, maintaining momentum despite the high base recorded in FY2025. According to an ICRA press release, this growth trajectory finds support from domestic leisure travel, demand from meetings, incentives, conferences, and events (MICE), weddings, and consistent business travel.

ICRA anticipates the pan-India premium hotel occupancy rate to hold steady at 72-74 per cent in FY2026, matching levels seen in the previous two fiscal years. Meanwhile, average room rates for premium hotels are projected to rise to Rs 8,200-8,500 in FY2026, up from Rs 8,000-8,200 in FY2025.

The premium hotel segment is expected to see sustained demand and pricin...