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Motilal Oswal forecasts 10–12% RevPAR growth for India’s hotel sector in Q2FY27
Motilal Oswal expects 10-12% RevPAR growth in Q2FY27, supported by corporate travel, events and tight room supply. It forecasts around 95 auspicious wedding dates in FY28 and cites an estimated 18% CAGR in India’s MICE market through CY33.
The numbers
Figures from Financial Express,
| FY27 auspicious wedding dates: | around 69 |
|---|---|
| Northeast branded rooms March 2026: | 3,674 |
| Northeast share of branded inventory: | 1.7% |
| Delhi event tariff increase: | two to four times |
Why it matters to operators and investors
Screen hotel acquisitions and partnerships for exposure to supply-constrained markets with strong corporate and events demand, with FY28’s stronger expected wedding calendar offering an additional demand tailwind.
What to watch next
- Q2FY27 reported RevPAR growth versus the 10–12% forecast
- Corporate contract renewal rates disclosed by hotel operators
- FY28 wedding-booking updates against around 95 auspicious dates versus 69 in FY27
- Hotel room-opening announcements in corporate and event destinations
- Reported occupancy weakening despite higher room rates
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Indian Hotels Company is likely to seek higher corporate contract rates where constrained room supply strengthens its negotiating position.
- EIH may prioritise higher-yield wedding and event bookings over discounted room blocks as the FY28 calendar fills.
- Lemon Tree Hotels may pursue additional management-contract signings to capture sustained demand, although new signings would not immediately ease room shortages.
- Motilal Oswal is likely to test its constructive outlook against reported room-rate growth and forward wedding bookings before extending it further.
The counter-case
The case against this reading — not reported by the source.
The 10–12% RevPAR increase is a forecast, not reported growth. Corporate travel and events could soften, while resistance to higher room rates or local supply additions could limit pricing power. Even if RevPAR meets expectations, rising operating costs could prevent comparable profit growth.
The source
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