ICRA expects India’s hospitality industry revenue to grow 7–9 percent year-on-year in FY27, following an estimated 11 percent expansion in FY26. Resilient domestic travel demand is supporting growth despite geopolitical uncertainties affecting inbound tourism. Premium hotel occupancy is projected at 72–74 percent, while average room rates are expected to reach INR 8,600–8,800. The forecast indicates continued strength across India’s hotel market, supported by domestic demand and sustained traveller activity nationwide.