India’s hospitality industry is projected to post 7% to 9% year-on-year revenue growth in FY27, according to ICRA. The outlook suggests the sector will continue expanding even as global headwinds create pressure on international travel and overall market sentiment.
The forecast comes after an estimated 11% expansion in 2025-26, indicating that growth may moderate but remain healthy. A key support for the industry is domestic travel demand, which is expected to help hotels maintain occupancy levels and room rates in the current financial year ending March.
ICRA’s view highlights the importance of the local travel market at a time when foreign tourist arrivals are seen as weaker. That softer inbound trend, along with geopolitical uncertainties, could limit faster gains, but the domestic segment appears strong enough to cushion the impact.
Overall, the India hospitality industry outlook for FY27 remains positive, with hotel performance expected to stay resilient despite external risks. The sector’s ability to sustain occupancy and pricing will be central to how revenue growth plays out over the year.
