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flag India's hotel industry grows in FY26, fueled by strong domestic demand and rising prices, with government support expected.

flag India's hospitality sector is seeing sustained growth in FY26, driven by strong domestic demand for leisure, business travel, weddings, and events, making it more resilient to global economic shifts. flag Premium hotel occupancy is expected to hold steady at 72–74%, with average room rates rising to Rs 8,200–8,500. flag A persistent supply-demand gap is boosting pricing power and revenue per room, while asset-light models like franchises and management contracts gain traction for higher margins. flag Government support through infrastructure and connectivity improvements is anticipated in the upcoming Union Budget, aiding expansion.

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