India luxury hotels bet on more ADR headroom, but analysts see city rates near ceiling
Operators like Oberoi and Leela argue room rates stay underpriced versus global peers, prioritizing ADR over occupancy. ITC posted +6% ADR, +10% RevPAR and a 37% premium. Branded supply is set to grow from 196,464 rooms in FY25 to ~300,000 by FY30, with luxury at 21% of pipeline. Analysts flag resorts hold more room than city hotels.
Indian luxury hotel chains argue room rates remain underpriced versus global peers and see continued pricing-power growth, prioritizing ADR over occupancy. Analysts note city hotels near ceiling while resorts hold more headroom; hotel stocks lagged Nifty in 2026.