India's hotel sector likely to gain momentum in H2FY27 on strong leisure demand

India's hotel industry is expected to see stronger growth in the second half of FY27, supported by robust domestic leisure demand and a steady recovery in corporate and international travel, according to a PhillipCapital sector report.The hospitality sector remained resilient in the first quarter of FY27 despite geopolitical disruptions. Industry occupancy rose by 2-4 percentage points year-on-year, while average room rates (ARR) increased 6-8% and revenue per available room (RevPAR) grew 11-13%, the report said.Weddings, MICE activity and international travel to support demandPhillipCapital said the recovery could strengthen in the coming quarters, aided by a heavier wedding calendar, improving meetings, incentives, conferences and exhibitions (MICE) activity and a seasonal increase in international travel from October.Limited new hotel supply in key markets could also support room rates and RevPAR as demand improves, the report said.“Demand outlook remains positive for Q2FY27, with domestic leisure demand staying strong, corporate travel gradually normalising, and…