ICRA Predicts Moderated Growth for India's Hospitality Sector in FY26

Imagine the hospitality industry as a rollercoaster.

For the past few years, it has been going up very fast, like a super-fast ride.

Now, it's still going up, but not quite as fast.

This is because after a period of growth in leisure travel and events, the industry is expected to grow at a more moderate pace.

The average cost of a hotel room is expected to increase, but the rate at which new hotels are being built is lagging behind.

Also, terror attacks had some impact, but things are getting back to normal.

The future looks okay because of improvements in transport and more event spaces.