India’s luxury hotel sector is entering 2026 with strong momentum, driven by rising domestic wealth, resurgent inbound tourism and renewed demand for weddings, MICE and experiential travel. Industry trackers show luxury as the only segment consistently posting RevPAR growth through 2024–25, supported by high room rates, strong F&B revenue and longer leisure stays.
Domestic high-net-worth travellers continue to fuel premium demand, while international arrivals, now above pre-pandemic levels in several states, are boosting yields through higher on-site spending. Key destinations such as Jaipur, Udaipur, Goa, Kerala and Delhi-NCR are witnessing sustained interest, encouraging both branded and boutique operators to expand.
New supply is largely strategic, with a tilt toward heritage conversions, asset-light management contracts and boutique wellness-led retreats. Investors are showing renewed appetite for value-add opportunities and luxury repositioning plays.
