India hotel boom enters golden cycle as luxury demand surges and supply lags Nomura

Rates are rising fast while luxury rooms stay scarce

India’s hospitality sector is entering a “golden cycle,” with Nomura pointing to rising average daily rates and attractive investment returns. Demand is outpacing supply, particularly for luxury hotels, as spending grows among wealthy travelers and business and tourism trips increase. A weakening rupee may also be drawing more foreign visitors, strengthening the outlook.