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December 13, 2025

Hotels set for a strong 2HFY26: Indian Hotels, Lemon Tree strong buys

India’s hotel sector is entering a period of sustained acceleration as travel activity broadens across business, leisure, weddings and MICE segments, supported by a steady improvement in infrastructure and a resilient domestic traveller base.The first half of FY26 delivered healthy performance despite several demand disruptions, with revenue and operating profit rising at a mid-teens pace on the back of stronger room rates and stable occupancies.As renovated inventory lifts achievable rates and the event calendar turns richer, the industry is positioned for an even stronger second half.Channel checks indicate that October held steady despite festival clustering, while November delivered mid-to-high-teen RevPAR gains and December is showing a similar visibility. Industry-level expectation

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