India Hospitality 1QFY27 preview – business is coming back

Research evidence excerpt

India Hospitality 1QFY27 preview – business is coming back

10 July 2026

India Hospitality EquitiesHotels Restaurants & Leisure

1QFY27 preview – business is coming back India

◆ We forecast low-double-digit to mid-teen revenue growth in Achal Kumar*

1Q led by high-single to low-double-digit growth in RevPARs Analyst,HSBC SecuritiesGlobal Transportand Capital Markets (India) Private

Limited

◆ Domestic demand remains strong with some recovery in achalkumar@hsbc.co.in

+91 80 4555 2751

inbound international travel; 1Q growth to benefit from low base

Harshit Mantri*, CFA

Analyst, Transport & Logistics, Hospitality

◆ TPs of ITC Hotels and Samhi adjusted, rest unchanged; focus HSBC Securities and Capital Markets (India) Private

remains on RevPAR growth momentum and FY27 guidance harshit.mantri@hsbc.co.in

+91 80 4550 3780

Domestic demand holds up: Domestic demand remained resilient in 1QFY27, offsetting

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

some of the weakness in inbound international tourism. While air travel demand was not registered/ qualified pursuant to FINRA regulations

disrupted by high fares and ME tension, the hotel industry enjoyed stronger demand as a

segment of leisure travellers skipped expensive flights, which increased budgets to spend

on hotels. Trading in the first half of Apr was impacted, but May-Jun was much stronger.

According to HVS Anarock tracker, while RevPAR was up 7-9% y-o-y in Apr (driven by

ARR growth), it was up 22-24% in May, mainly due to a lower base.

Business has started to come back: Trading in Q4FY26 was slightly soft in the

business cities (i.e. Bengaluru, Hyderabad, Pune, etc) since GCC-related business

traffic was impacted by ME tension. However, demand was very strong in leisure

markets (i.e.