New Delhi, June 6 -- India's hotel industry is expected to recover its momentum as the West Asia conflict impact normalises and foreign travel returns to pre-war levels, Kotak Securities said in a report.

With occupancy likely inching toward 72 per cent and Annual Recurring Revenue compounding at 6.4 per cent Compounded Annual Growth Rate, the brokerage projects 16 per cent EBITDA CAGR for its coverage universe over FY2026-28E. Stock performance will hinge on how quickly the crisis resolves and whether ARR growth beats Street expectations.

India's hospitality sector delivered modest results in 4QFY26 as geopolitical tensions weighed on demand. RevPAR grew 5.3 per cent YoY to Rs 6,868/day, supported by 6.3 per cent YoY ARR growth to Rs 1...