As India’s hospitality sector closes out 2025, the year stands out for its sustained momentum across travel, tourism, and accommodation demand. From the rise of spiritual and cultural tourism to the growing impact of large-scale events, weddings, and infrastructure-led travel, the sector has entered a phase of resilient, diversified growth. Reflecting on these shifts and the outlook ahead is K.B. Kachru, President, Hotel Association of India and Chairman – South Asia, Radisson Hotel Group.
2025 has been a year of renewed optimism for India’s hospitality sector, marked by sustained momentum and strong demand indicators. The year was shaped by a powerful convergence of spiritual, cultural, and experiential travel with spiritual tourism emerging as a key driver for hotels. Destinations such as Ayodhya, Jammu, Varanasi, Puri, Amritsar, and Tirupati witnessed exceptional footfall. The historic Maha Kumbh further contributed to hotel occupancy and drove demand growth in Tier-II and Tier-III markets. International tourists saw a steady increase especially on India’s spiritual routes creating opportunities to develop more such destination experiences As per various industry reports, the Indian hospitality segment had achieved exceptional growth, with RevPAR surging to 12.9 per cent in Q2. India also saw a new wave of youth-driven travel demand sparked by big-ticket concerts and global performances with major headliners by Coldplay, Alan Walker, and Ed Sheeran. Coldplay ‘s concert in Ahmedabad, resulted in an estimated economic impact of ₹641 crore ₹392 crore flowed directly into the city’s economy and the GST revenue collected was ₹72 crore. This exemplifies how large-scale events can significantly boost local businesses, from hotels and restaurants to transport ,retail, art and handicrafts.The country’s vibrant wedding season for 2025 is estimated at 4.6 million weddings, adding another strong layer of demand, reinforcing the sector’s resilience and diversity. The Government of India expects these events to collectively generate around ₹3,000 crore in revenue, underscoring their growing importance as a driver of tourism and economic activity.
India’s robust macroeconomic environment continues to provide a strong foundation for the industry’s growth. A rising GDP trajectory, accelerated infrastructure development, including new airports, regional connectivity, and upgraded rail networks with the government’s sustained focus on tourism and destination development programs have strengthened the ecosystem for both business and leisure travel. Coupled with all this is the increased interest in India for spiritual travel, MICE, and wellness-led experiences. As we begin another year, the sector is therefore looking at sustained momentum and a clear outlook of continued expansion and resilience. As per reports, India’s hospitality sector is expected to continue its rebound, with the broader branded-hotel pool seeing around 7-8% RevPAR growth in FY2026, with ARR rising to ~₹8,400–8,600, supported by robust domestic demand, expanding travel infrastructure, and growing organised-sector penetration. We look forward to a supportive budget and remain committed to working with industry stakeholders and policymakers to build a future-ready, sustainable, and globally competitive hospitality ecosystem.
