India hotels: Monthly ADR review

Research evidence excerpt

India hotels: Monthly ADR review

Global Markets Research

18 June 2026India hotels: Monthly ADR review

EQUITY: GAMING, HOTELS & LEISURE

Expect healthy ADR growth rates by IHCL and Leela in 1QFY27F Research Analysts

India Property

Akash Gupta - NFASLQuick Note akash.gupta3@nomura.com

+ 91 22 40374043InourhotelADR(averagedailyrate)tracker,weanalyzepricingtrendsacross~250

hotelsinkeycities(Delhi,Goa,Hyderabad,MumbaiandBangalore)overthepastmonth,

focusingonthreemajorbrands(IHCL’sTaj,ITCHotels,andLeela),alongwithnewhotel

openings/contractsigningsbykeyplayersin1QFY27.Thefollowingareourkey

takeaways:

• For cities such as Bangalore and Hyderabad, we are starting to see ADRs stabilizing

in June after the sharp correction witnessed in March and April.

• We believe the negative impact of the West Asia conflict on ADRs has been the

biggest on Delhi followed by Mumbai.

• For our coverage, based on calculated ADRs, we estimate IHCL (IH IN, Buy) and

Leela (THELEELA IN, Buy) will record ADR growth rates of 7-9% y-y for 1QFY27F,

despite the impact from the conflict, as they appear to benefit from resilient

domestic/leisure demand.

• Overall, with receding concerns about the West Asia conflict, we believe the sharp

ADR correction phase witnessed during April-May is largely behind us. We expect a

strong 2HFY27F for the India hotel sector.

1. Average room rate trends across key markets and brands:

• Mumbai: The blended average ADR declined to ~INR13.9K/night in June, down 10%

m-m, as the conclusion of the IPL season led to a pullback in demand across key

micro markets. Rates had held relatively steady through April-May (~INR15.4-

15.9K/day range), but we believe the post-IPL normalization has brought ADR drop.