Archive · 30 Jan 2026
India's Hotel Industry Sees 16-21% Earnings Growth
India's hotel industry is expected to grow a lot in the next few years.
Experts say earnings will go up by 16 to 21 percent each year until 2028.
This is because more people are staying in hotels, and hotels are charging more for rooms.
Also, events like weddings and business meetings bring in a lot of money.
The hotels are making more profit because they are getting better at managing their businesses.
Even though the hotels are doing well, they are not as expensive to buy as they used to be, which might be a good time for investors.
India's hotel industry projected to grow 16-21% annually through FY28.
Average room rates expected to rise 5-7% per year.
EBITDA margins to expand by 140 basis points over 3 years.
Events like weddings and corporate meetings contribute 30-45% of sector revenue.
Current valuations at 17% discount to 5-year average, presenting a buying opportunity.
- Who
- India's hotel industry and HSBC Global Investment Research
- What
- Projected 16-21% earnings growth through FY28
- When
- FY25-FY28
- Where
- India
- Why
- Due to rising room rates, high occupancy, and robust demand
- Projected Earnings Growth
- 16-21% CAGR through FY28
- Average Room Rate Growth
- 5-7% annually
- EBITDA Margin Expansion
- 140 basis points over 3 years
- Revenue from Events
- 30-45% of sector revenue
- Current Valuation Discount
- 17% below 5-year average
- Key Driver
- Strong demand and limited supply