New Delhi, March 29 -- The Indian hospitality sector is set to continue its robust growth, with a projected 7-8 per cent increase in Revenue per Available Room (RevPAR) for FY26, according to a report by CareEdge Ratings.

As per the report the growth will be driven by sustained demand and a rise in Average Room Rates (ARR) strong domestic travel, rebound in foreign tourist arrivals (FTAs), and growing demand from Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism.

"A further 7-8 per cent growth is projected for FY26, in the range of Rs 5,600-5,700, with ARR climbing to

Rs 8,400 - 8,600 driven by sustained demand outpacing new supply," the report added.

In FY25, the branded hotel inventory is anticipated to see an 8-10 p...