NEW DELHI, Dec 24, 2025: India’s hospitality sector is entering 2026 with steady demand from Indian travellers and hopes of a stronger foreign tourist season. Hotel owners and operators are also renewing their long-running request for a wider and uniform infrastructure tag for hotels, which they say would ease access to loans and reduce borrowing costs.

Industry executives say domestic travel has been the main support for hotel business through 2025 and is likely to remain the key driver in 2026. New supply is also coming in, with new hotel deals signed across many cities, including smaller markets.

A recent JLL report said hotel revenue per available room rose 12.9{3ed7819c3563dca85364f9c966d48c284cd3d43c23a196a6bbb99b5b9eebb247} year-on-year in April to June 2025, and it also noted 103 hotel signings with 12,991 keys in the same quarter.

Government data shows foreign tourist arrivals have continued to improve after the pandemic period, though they have not yet returned to the 2019 level. A Ministry of Tourism release citing Bureau of Immigration data put foreign tourist arrivals at 9,951,722 in 2024, compared with 10,930,355 in 2019.

In another recent reply in Parliament, the government said 3.174 million e-visas were issued to tourists from November 1, 2024 to November 30, 2025.

Industry leaders say better air links, easier visas, and more global events in India could help bring in more overseas visitors in 2026, especially in peak months.

Hotel groups have been asking for a wider and uniform infrastructure tag for years, saying it would make funding easier for new projects and upgrades. In the Union Budget speech for 2025-26, the government said hotels in the top 50 tourist destination sites chosen under a challenge mode will be included in the infrastructure harmonised master list.

More recently, Tourism and Culture Minister Gajendra Singh Shekhawat said the government is actively considering a uniform infrastructure status for the hotel industry, during an industry event in New Delhi.

Domestic travel remains the main support for hotels, and the sector is adding new rooms through fresh signings. Foreign tourist arrivals have improved versus the post-Covid years, but the 2019 mark has not been reached yet. On the policy front, hotels in select destinations already have a route to the infrastructure list, and the wider request is still under government review.

As 2026 begins, the hospitality sector is banking on strong Indian travel demand and a further rise in overseas visitors. The industry is also watching for a decision on a wider infrastructure tag, which it says could support faster hotel expansion and upgrades.