
India's hospitality sector experienced strong growth in 2025, exceeding expectations with a focus on corporate and spiritual tourism. Key drivers included increased business travel, significant footfall in spiritual destinations like Ayodhya and Varanasi, and a surge in youth-driven demand from major concerts. While revenue growth reached approximately 6%, it fell slightly short of the projected 7-9% due to geopolitical uncertainties. The sector anticipates continued strength into FY26, benefiting from these diverse travel trends.