India's branded hotel sector is projected to add nearly 20,000 rooms over the next two fiscal years, a 20% increase in supply, according to Crisil Ratings. Despite this expansion, occupancies are expected to remain stable at 74-75%, with average room rates rising 5-7% as demand continues to outpace supply. This growth is driven by rising travel aspirations and improved connectivity, with most new rooms added by developers expanding their own brands through management contracts.