Strong hotel demand to outpace hotel room supply through FY2028: ICRA

India’s upscale hotel market is set for steady expansion, with room supply expected to grow 5–6% annually until FY2028, according to ICRA. However, demand is projected to rise faster at 8–10%, driving occupancy to 72–74% and average room rates to ₹8,200–8,500 by FY2026. The sustained demand-supply gap is expected to boost pricing and profitability.