The Indian hospitality industry is bouncing back strongly, and 2025 is looking like a great year for hotels and tourism. Many things are helping this growth, such as more people traveling for work and events, exciting festivals, and a busy wedding season.
In the last part of the financial year 2025, hotel businesses are expected to do very well. They project that Revenue per Available Room (RevPAR), which tells us how much money hotels make per room, will go up by 12-14% compared to last year. This is thanks to a rise in room prices and high occupancy rates. Major cities like Mumbai, Delhi, Bangalore, and Hyderabad are seeing more travel from business people and tourists coming for events.
Big concerts and international festivals have shown that India can be an amazing place for entertainment, leading to higher room prices and more bookings in popular hotel areas. The government is also making efforts to boost tourism by developing 50 tourist spots focusing on spiritual and medical trips. The easier e-visa process for some countries is expected to bring in more foreign tourists, who are not yet at the levels seen before the pandemic.
With a weaker rupee, India is becoming more affordable for international guests, attracting more high-end and luxury hotels. Improvements in airports and transportation are making India a competitive option for travelers from around the world.
Businesses are well-positioned with an increased number of rooms, price hikes for corporate clients, and reopening revamped properties, which should increase earnings. Major sporting and cultural events like the Asia Cup and IPL are coming up in 2025, likely giving the hospitality sector extra boosts. Spiritual tourism is also booming, with many religious sites seeing a record number of visitors.
Overall, due to strong economic growth, more disposable income, and more people traveling both domestically and internationally, India’s hospitality industry is set to grow. Companies in this sector are expanding and improving their services, keeping the momentum going for the future.
Indian Hotels: Buy with a Target of Rs 960
The management team expects strong revenue growth in 2025 thanks to weddings, travel, and events. Room prices and occupancy rates are looking good. The company is also focusing on spiritual tourism, which matches the government’s plan to develop 50 key tourist spots, with plans to open over 2,800 new rooms in locations like Ayodhya, Hampi, and Ujjain in the next 3-5 years. This, along with government support, positions Indian Hotels for continued growth.
Lemon Tree: Buy with a Target of Rs 190
Lemon Tree Hotels continues to grow quickly, showing a 23% revenue increase already in the 3rd quarter of 2025. Its occupancy rate is up to 74.2%, and room prices rose by 7%. The opening of new hotels is helping the company see more profits, increasing margins significantly. With a pipeline of 6,068 planned rooms, including new locations, Lemon Tree is in a great spot for continued success and expects a steady rise in earnings.
Disclaimer: The views and suggestions in this article are from experts and do not represent the views of Economic Times.
Leave a Reply