President of Hotel Association of India and Chairman – South Asia, Radisson Hotel Group, K B Kachru explains India’s hospitality momentum entering a promising 2026
In his year-end assessment of 2025, K B Kachru, Chairman – South Asia, Radisson Hotel Group and President of the Hotel Association of India, said the year reflected renewed confidence in India’s hospitality sector, driven by sustained momentum and consistently strong demand indicators across multiple travel segments.
On the demand landscape, Kachru noted that spiritual tourism emerged as a major contributor to hotel performance, with destinations such as Ayodhya, Jammu, Varanasi, Puri, Amritsar, and Tirupati witnessing high visitor volumes. The Maha Kumbh further lifted occupancy levels and accelerated demand growth in Tier II and Tier III markets, reinforcing the sector’s broad-based recovery.
International tourist arrivals also showed a steady increase, particularly along India’s spiritual circuits, creating opportunities for destination-led experience development. According to industry reports, the hospitality sector recorded a strong operating performance, with RevPAR rising by 12.9 per cent in the second quarter of the year.
KB Kachru said, “2025 has been a year of renewed optimism for India’s hospitality sector, marked by sustained momentum and strong demand indicators. The convergence of spiritual, cultural, and experiential travel, alongside large-scale events, weddings, and improving infrastructure, has reinforced the sector’s resilience and long-term growth outlook,”
He also pointed to the emergence of youth-driven travel demand, driven by large-format concerts and international performances by global artists including Coldplay, Alan Walker, and Ed Sheeran. Coldplay’s concert in Ahmedabad generated an estimated economic impact of ₹641 crore, with ₹392 crore contributing directly to the city’s economy and ₹72 crore collected as GST revenue. Such events, he noted, delivered spillover benefits across hotels, restaurants, transport services, retail, and local arts and handicrafts.
India’s wedding economy remained another major demand pillar in 2025, with an estimated 4.6 million weddings taking place during the year. According to government estimates, wedding-related travel and spending are expected to collectively generate around ₹3,000 crore in revenue, further strengthening the hospitality sector’s demand base.
Kachru attributed the industry’s performance to India’s favourable macroeconomic conditions, including a rising GDP trajectory and accelerated infrastructure development. Investments in new airports, improved regional air connectivity, and upgraded rail networks, along with continued government focus on tourism and destination development programmes, have enhanced the ecosystem for both leisure and business travel.
Looking ahead, he said demand for spiritual tourism, MICE, and wellness-led travel is expected to remain strong. Industry projections indicate that India’s branded hotel segment is likely to record 7–8 per cent RevPAR growth in FY2026, with Average Room Rates projected to rise to approximately ₹8,400–8,600. Growth is expected to be supported by robust domestic demand, expanding travel infrastructure, and increasing penetration of the organised hospitality sector.
Kachru added that the industry is seeking continued policy support and expressed optimism around the forthcoming Union Budget. He reaffirmed the Hotel Association of India’s commitment to working with policymakers and industry stakeholders to build a sustainable, future-ready, and globally competitive hospitality sector.
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