Indias Hospitality Sector To Grow At CAGR Of 10.5 ; Revenue to surpass Rs 1.1 trillion via 2027: Report

New Delhi: The Indian hospitality trade is prone to witness a robust expansion trajectory in spite of renewed tensions within the subcontinent and broader geopolitical uncertainty, a record via Rubix Data Sciences stated. The record tasks powerful expansion for India’s hospitality sector, with the marketplace anticipated to surpass ₹1.1 trillion in earnings via FY2027, rising at a CAGR of 10.5 %.

This surge is basically attributed to the resurgence of home tourism, the expanding inflow of Foreign Tourist Arrivals (FTAs), and the fast enlargement of the Meetings, Incentives, Conferences, and Exhibitions (MICE) section. FTAs, being a key motive force of top rate lodge efficiency, are projected to succeed in 30.5 million via 2028.

Rubix additionally highlights a shift in call for drivers, with home travellers contributing 50 % of incremental earnings expansion, adopted via international vacationer arrivals at 30 % and the MICE section at 20 %.

India’s hospitality sector witnessed a exceptional restoration from the pandemic’s affect, with occupancy charges rebounding from a low of 35 % to 68 % in FY2024. Branded and arranged resorts have in particular excelled, reaching decade-high figures with an Average Daily Rate (ADR) of ₹7,500 and Revenue Per Available Room (RevPAR) of ₹5,439.

The western a part of India noticed the absolute best RevPAR and the utmost occupancy charge of 69.5 %, whilst locations like Rishikesh, Udaipur, and Varanasi are rising as high-yield markets.

“India’s hospitality sector is no longer metro-centric; it is thriving in new routes driven by local demand, spiritual tourism, and mid-range experiences. With the industry set to cross ₹1 trillion by FY2027, the size of the opportunity is huge — but so is the need for risk-aware growth,” stated Mohan Ramaswamy, CEO and Co-Founder, Rubix Data Sciences.

Supported via sturdy infrastructure spending, state-level tourism tasks, and digital-first go back and forth conduct, India’s hospitality trade is getting into a structurally more potent section, the record added.