India's luxury hotels bet on more pricing power as operators call room rates underpriced vs global peers
Oberoi, Leela and ITC prioritize rate over occupancy, arguing Indian luxury tariffs still lag global peers. ITC posted +6% ADR, +229 bps occupancy and +10% RevPAR with a 37% premium. Branded supply seen rising to 300,000 rooms by FY30 from 196,464 in FY25, luxury at 21% of pipeline. Some see resorts, not city hotels, holding greater headroom.
Indian luxury hotel operators (Oberoi, Leela, ITC, Radisson) argue room rates remain underpriced versus global peers and prioritize pricing power over occupancy, though some see resorts—not city hotels—holding the greater headroom.