New Delhi, Nov. 10 -- Demand for hotels in India is expected to continue to outpace the supply addition, at least over the next three years, rating agency ICRA said Monday, inferring that the demand-supply mismatch augurs well for the pricing environment and occupancies for the key hospitality space.

With three years of double-digit revenue expansion from 2022-23 to 2024-25, and the growth momentum continuing in the current fiscal year, the Indian hospitality industry has fared well in recent years.

Rating agency ICRA forecasts a compound annual growth rate (CAGR) of 5-6 per cent in premium hotel room additions between 2024-25 and 2027-28, based on its proprietary inventory database.

In comparison, demand is expected to grow at a faste...