{
  "id": 4153380,
  "title": "India's hotel sector likely to gain momentum in H2FY27 on strong leisure demand",
  "url": "https://urgent.news/2026/08/29/indias-hotel-sector-likely-to-gain-momentum-in-h2fy27-on-strong",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-29T09:10:41.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/indias-hotel-sector-likely-to-gain-momentum-in-h2fy27-on-strong-leisure-demand/articleshow/133607897.cms"
  },
  "original_language": "en",
  "account": "The hotel industry in India is projected to experience robust growth in the second half of FY27, according to a sector report by PhillipCapital. This momentum is expected to be fueled by robust domestic leisure demand, a gradual recovery in corporate and international travel, and a calendar packed with weddings, MICE events, and international tourism starting in October. Despite initial disruptions, the sector showed resilience in the first quarter of FY27, with occupancy rates increasing by 2-4% year-on-year, average room rates (ARR) rising by 6-8%, and revenue per available room (RevPAR) growing by 11-13%. Limited new hotel construction in key markets should further bolster room rates and RevPAR as demand strengthens. The report predicts a positive demand outlook for Q2FY27, with domestic leisure demand remaining strong, corporate travel gradually returning to normal, and international travel recovering as connectivity improves. Notably, domestic leisure locations such as Rajasthan and Goa saw a high 20% growth in RevPAR, while Chalet Hotels' resorts posted a 19% rise and Leela Hotels' resorts saw a 24% increase in RevPAR. However, corporate and international travel remained subdued due to geopolitical concerns and tighter budgets, while domestic air passenger traffic grew by just 1.2% year-on-year to 86.3 million in Q1FY27, while international traffic dropped around 10.2% to 17.9 million. Despite this, the monthly trend improved as the quarter progressed, with domestic passenger growth rising 7.7% in May before declining to a 1.2% decline in June. The Indian hotel industry delivered healthy growth in Q1FY27 despite geopolitical disruptions and normal seasonality, with industry pricing remaining stable even in markets where occupancy weakened.",
  "summary": "India's hotel sector anticipates stronger growth in the second half of fiscal year twenty twenty seven. Robust domestic leisure demand and recovering corporate travel will support this positive outlook. International travel is also expected to improve, aiding overall industry performance. Limited new hotel supply will help maintain room rates and revenue per available room. Industry occupancy and…",
  "key_points": [
    "India's hotel sector expected to grow in H2FY27 driven by strong domestic leisure demand",
    "Robust recovery in corporate and international travel, plus wedding and MICE events boost sector",
    "Domestic locations like Rajasthan and Goa see 20% RevPAR growth, while Chalet and Leela Hotels lead"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}