logo
Icra projects 6-8 pc growth for hospitality sector, downgrades outlook to 'stable'

Icra projects 6-8 pc growth for hospitality sector, downgrades outlook to 'stable'

Time of Indiaa day ago

Growth of India's hospitality sector is expected to "normalise" at 6-8 per cent in the current financial year, rating agency Icra said on Monday while downgrading the sectoral outlook to "stable" from positive.
The rating agency also stated that foreign tourist arrivals (FTAs) to India are expected to remain muted in the next few months in the aftermath of the terror attack at Pahalgam in Jammu and Kashmir, but are estimated to witness a gradual recovery thereafter.
However, domestic tourism has been the prime demand driver so far and is likely to remain the same in the near term.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Bank Owned Properties For Sale In Gorazde (Prices May Surprise You)
Foreclosed Homes | Search ads
Search Now
Undo
Factors, including improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE events, with the opening of multiple new convention centres in the last few years, will support the growth over the medium term, Icra said.
According to the rating agency, the domestic hospitality sector's earnings and credit metrics are expected to remain stable in FY2026 with benefits from cost rationalisation measures and operating leverage.
Live Events
A "stable" outlook indicates a low likelihood of change in the near to medium term, whereas a "positive" outlook suggests a high probability of an upgrade in the near to medium term.
The rating agency estimates pan-India
premium hotel occupancy
to hold at 72-74 per cent in FY2026, slightly higher than the 70-72 per cent levels witnessed in FY2024 and FY2025.
The average room rates (ARRs) for premium hotels are projected to rise to Rs 8,200-8,500 in FY2026, after a healthy Rs 8,000-8,200 in FY2025 amid lagging supply additions and several hotels undergoing renovation, refurbishment and upgradation, the ratings agency said.
"After three years of strong demand, driven by favourable domestic leisure travel, demand from meetings, incentives, conferences and exhibitions (MICE), including weddings, and business travel, the growth in the Indian hospitality sector is forecast to normalise at 6-8 per cent YoY in FY2026," Jitin Makkar, Senior Vice President and Group Head - Corporate Ratings, Icra Ltd, said.
"While the terror attacks in April 2025 and consequent heightened uncertainties in North and West India in May 2025 had led to a surge in cancellation of travel/MICE, the impact has been largely temporary and localised. In recent weeks, there has been a healthy recovery in sentiments following the abatement of the conflict," Makkar added.
Icra's sample set, comprising 13 large hotel companies, is likely to report range-bound operating margins of 34-36 per cent for FY2026, despite a lower revenue growth.
The margins will remain supported by factors like cost-rationalisation measures and asset-light expansions in recent periods.
However, within the sample, it is likely to be a mixed bag, depending on renovations and an increase in employee expenses amidst growing demand.
"Land availability issues currently constrain supply addition in the premium micro-markets in metros and larger cities. The addition to premium hotel supply in these areas is largely on account of rebranding or property upgradation, and the greenfield projects are largely being initiated in the suburbs," Makkar said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

5 from Kerala killed in Kenya bus accident
5 from Kerala killed in Kenya bus accident

Indian Express

time18 minutes ago

  • Indian Express

5 from Kerala killed in Kenya bus accident

Five from Kerala were killed in a road accident in Kenya on Monday, the Indian Embassy in Qatar said Tuesday. A group of 28 Indians, expatriates in Qatar, left on June 6 to visit Kenya. They were touring Kenya when their bus met with an accident in Nyandarua County in Central Kenya. Several others in the bus have sustained injuries. The deceased were identified as Geetha Isaac, 58, a resident of Thiruvalla; Jasna Kuttikkattuchalily (29) of Thrissur and her one-and-a-half-year-old daughter Ruhi Mehrin; Riya Ann, 41, of Palakkad and her eight-year-old daughter. The Indian embassy in Qatar posted on X: 'A group of 28 Indians from Qatar were visiting Kenya, where their bus met with an unfortunate road accident yesterday. As per available information, five Indian nationals have lost their lives in the accident. Officials from HCI Nairobi are on the ground and extending all help.' Kerala CM Pinarayi Vijayan conveyed condolences to the families of the victims and assured support, the Chief Minister Office said Tuesday. In its statement, the CMO said Loka Kerala Sabha in Kenya has been working closely with the Indian High Commission and local authorities to help those affected. NORKA ROOTS, the state government entity for expatriates' welfare, is coordinating support efforts through its global contact centre. The CMO also said all the injured persons are being shifted to hospitals in Nairobi. The bodies of the victims will also be taken to Nairobi.

GNIDA wants waste pickup fee, RWAs say paid already
GNIDA wants waste pickup fee, RWAs say paid already

Time of India

time19 minutes ago

  • Time of India

GNIDA wants waste pickup fee, RWAs say paid already

Noida: Greater Noida residents staged a walkout during a meeting with GNIDA, protesting newly proposed charges for garbage collection. The residents argued that they had already paid for such services through the one-time lease rent during property registration. Tired of too many ads? go ad free now In a meeting held by GNIDA's health department with representatives from RWAs on Monday, the authority informed residents about the proposed monthly charges for garbage collection. These charges were to range from Rs 80 for plots up to 200 square meters to Rs 150 for plots exceeding 500 square meters. However, residents voiced strong opposition, citing the poor state of waste management services in the city and their belief that the cleanliness of the area is the responsibility of the municipal body or GNIDA itself. The meeting, chaired by Chetram Singh, senior manager of GNIDA's health department, included RWAs from sectors such as Alpha 1 and 2, Beta 1 and 2, Gamma 1 and 2, and others. During the session, residents were informed of the new charges: Rs 80 per month for plots up to 200sqm, Rs 100 for plots between 200 and 300sqm, Rs 120 for plots between 300 and 500sqm, and Rs 150 per month for plots larger than 500sqm. Residents were quick to point out that they had already paid for waste collection services through the lease rent they had paid at the time of property registration. Nidhi Sharma, a resident of Sector Gamma 1, quipped, "When lease rent and transfer charges are being taken, why are additional user charges for waste collection being imposed?" Many residents condemned the proposal, viewing it as yet another financial burden. The walkout was also fueled by the longstanding issues with waste disposal in Greater Noida. According to multiple residents, the cleanliness situation in the city is dire, with poor service from the agency hired by GNIDA, Blue Planet. Residents also raised concerns over the poor waste collection practices. "Despite a tender worth 30-35 crores, urban sectors are not being cleaned properly," Bhati added. The residents also pointed to the outsourcing of waste collection to the private company Blue Planet, which, they claimed, had failed to meet expectations. Alok Singh, another resident of Greater Noida said, "Every time a problem is solved, it reappears the next day. The authorities have failed to deliver, and now they're asking for more money." In light of these protests, resident Alok Singh suggested that GNIDA form a dedicated city maintenance department (CMD), which would streamline waste management and other civic services

Fraud PIL filed in court, GDA stalls approvals for 137 plots in Swarn Jayanti Puram scheme
Fraud PIL filed in court, GDA stalls approvals for 137 plots in Swarn Jayanti Puram scheme

Time of India

time19 minutes ago

  • Time of India

Fraud PIL filed in court, GDA stalls approvals for 137 plots in Swarn Jayanti Puram scheme

Ghaziabad: Ghaziabad Development Authority (GDA) has barred map approvals for 137 plots in the Swarn Jayanti Puram housing scheme, which are currently under litigation in the civil court. The scheme, launched in 1998, sold 1,553 plots of various sizes, but allotment of 137 were cancelled when owners defaulted on instalments. It was alleged that a few GDA officials, in connivance with property dealers, got the allotments of these plots restored between 2005 and 2007 after paying a paltry sum to the original allottees. The officials then got the plots transferred in their names. The irregularities came to light in 2011 when a petition was filed in the high court, alleging that officials had indulged in fraudulent means to restore cancelled plots in the area. The court had directed Moradabad range commissioner to investigate the matter. The inquiry had found some officials, including former secretary and vice chairperson of GDA, were involved in the scam, and FIRs were registered against them in Dec 2017. However, action against officials found involved in the irregularities has been slow. In Oct 2022, Allahabad high court had reprimanded the GDA, saying it "slept over these files without taking any action". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 경기도 거주자 전용: 무료 영웅 캐릭터를 받으세요! 레이드 섀도우 레전드 Undo Sources said the Authority recently received map approval applications for some of these 137 plots. Subsequently, GDA additional secretary wrote to the town planning department asking it to bar map approvals of any of these 137 plots."There were attempts to get the map approval of 137 plots in the Swarn Jyanti Puram housing scheme, even though there is an ongoing case in the Ghaziabad civil court over plot allotment. The additional secretary has directed the town planner to cancel map approvals for these plots, if any have been cleared already," a GDA official told TOI. The fraud is estimated to have cost the state exchequer a loss of about Rs 3 crore and an additional Rs 30 lakh in stamp duty. TOI earlier reported that the 137 plots were allegedly restored at the sector rate of 1998 — when it ranged between Rs 2,575 per sqm and Rs 2,820 per sqm. But according to the rules, the plots ought to have been restored at the prevailing sector rate of 2005-2007 or 75% of the market value, whichever was higher. The sector rate then was Rs 12,000 per sqm.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store