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Hotel demand trends remain optimistic in H2

ICICIdirect Research 11 Sep 2026 DISCLAIMER

BRICS summit 2026 skyrocketed the premium hotel room rentals in Delhi. This event brings in top international leaders in Delhi from Sept 11-13, 2026, resulting in strong uptick in demand for the premium hotels. Several premium properties under the brand Taj, Leela and ITC are showing limited availability or no availability in Delhi.
Hotel room rental has gone above Rs 2 lakhs per room night during the same period. e.g. ITC Maurya is quoting a rate of Rs2,30,000 per room night during 11-13th Sept weekend and same hotel is quoting around Rs25,000-30,000 per room night during the weekends in late Oct,26.
Upcoming long weekends are sold out in key tourist destinations: There are around 11 long weekends starting from 11th Sept, 2026 till 31st Mar, 2026. This along with upcoming festive season (Diwali and Christmas) will result in the strong business period of 50-55 days for hotel companies driven by high domestic tourism. Favourite tourist destination such as Goa is almost sold during the weekend of 2nd – 4th Oct,26 and room rentals of premium hotels have gone up in the range of 11-59% during the long weekend.
Wedding season will boost the business room and F&B business in H2FY27: There 40 wedding days between Nov,26 – Mar,27, which will boost the hotel and F&B business of the hotel companies. We expect resort properties under the listed companies to have 100% occupancy and strong F&B business growth during the wedding season.
Outlook: Q1FY27 was relatively good for listed hotel companies in India with high single digit to low double digit RevPar growth and stable profitability. We believe BRICS summit and other events will provide some fuel in seasonally week Q2. H2FY27 is expected to be relatively strong considering the high room demand during the festive season, long wedding period, and high number of long weekends. Thus, we expect the hotel companies to achieve the guidance of achieving high single digit to low double digit RevPar growth coupled with stable margins in FY27. We continue to like Indian Hotels Company and ITC Hotels as our top picks in the space.

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