The 2026 Indian Hospitality Trends & Opportunities Report
India, À La Carte
“Everything in moderation... including moderation”
Popular aphorism, a favourite of Julia Child
The sentiment behind this quote was a favourite of Julia Child, the legendary chef who introduced French cuisine to generations of Americans, and serves as a useful reminder that good judgement allows for both restraint and indulgence. Indian hospitality has plenty of occasions for each. Demand is growing, rates are rising and the development pipeline suggests that nobody intends to leave the table hungry. Yet the same helping of new supply could be welcome in one market and difficult to digest in another. Meanwhile, the queue at the great Indian hospitality buffet is getting longer, with owners, brands, and investors often reaching for the same dishes. An à la carte approach looks increasingly sensible: choose the market, understand its ingredients, and order to suit the appetite.
In closing, it is imperative to point out that roughly one in four hotels in the sample set recorded a RevPAR decline this year. That is reason enough to examine the ingredients behind each future investment. This year’s Trends & Opportunities Report does exactly that: studying performance, supply, demand, and timing, market by market. India offers an increasingly enjoyable hospitality menu. There is much to be enthusiastic about, and plenty still to discover. The next successful investment, however, deserves to be chosen à la carte.
This year’s opening course is reassuring. In 2025/26, nationwide average room rates rose 6.4% to ₹8,962, while RevPAR increased 6.2% to ₹6,099. Occupancy remained broadly steady at 68.1%, but demand was hardly sitting idle between courses: occupied room nights grew 5.6%, broadly matching the expansion in available supply. That growth is particularly noteworthy given the brief disruption to travel activity in Q1 following Operation Sindoor. More rooms were offered, more were sold, and guests paid more for them - a satisfying start. The main course, however, is the pipeline. Against 2,09,180 existing rooms, approximately 1,61,000 are proposed, with nearly 1,17,000 classified as being in active development. At roughly 77% of existing inventory, the proposed pipeline is the largest relative commitment in more than a decade. Some dishes will arrive late; others may never leave the kitchen. Even so, this is an ambitious order.
It is imperative to point out that roughly one in four hotels in the sample set recorded a RevPAR decline this year. That is reason enough to examine the ingredients behind each future investment. This year’s Trends & Opportunities Report does exactly that: studying performance, supply, demand, and timing, market by market. India offers an increasingly enjoyable hospitality menu. There is much to be enthusiastic about, and plenty still to discover. The next successful investment, however, deserves to be chosen à la carte.
Hotelivate-Savills, a multifaceted hospitality consulting firm offering specialised services to clients across Asia Pacific and the Middle East, is proud to present the 2026 Indian Hospitality Trends & Opportunities report, our 29th edition. The current participation base of 2,168 hotels with a total inventory of 2,09,180 rooms offers thorough coverage of India’s branded hospitality landscape enabling more incisive and detailed insights on national trends, performance of major hotel markets, and demand and supply forecasts compared to any other report of a similar nature.
The results of our survey and analyses have been presented at an All-India level, specified by star category, by administrative zones, by city tiers and with a focus on the 20 major hotel markets, indicating the best and the worst performers and identifying reasons for the same. Furthermore, a detailed review of the existing and future supply has been conducted at the macro and micro level to facilitate a better understanding of the growth in the number of branded rooms in the country across positioning.
India’s hospitality table continues to grow. Halfway through 2026/27, demand and pricing remain positive despite geopolitical tension, trade uncertainty and repeated disruption to travel. The pipeline also shows no shortage of confidence. Confidence, however, does not make every market ready for another hotel. Some destinations have the depth to absorb another serving; others risk receiving new supply before existing rooms have found enough guests. As Julia Child reminded us, good judgement requires both indulgence and restraint. The next phase will reward owners, brands and investors who understand the local appetite, judge the portion correctly, and know when not to order.
For more information, please contact Achin Khanna at achin@hotelivate.com or Aayesha Khan at aayesha@hotelivate.com
