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Luxury Hotels Stay Above Fray
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Good Morning. India's hotel industry saw many new entrants and investments amid the revenge travel boom post pandemic. As that boom fades, smaller markets are seeing a massive supply of new inventory. However, elite players in metro cities aren’t likely to face this problem. By focusing on high-stakes corporate events and curated experiences, they’re successfully sidestepping this oversupply. In 2026, being "hard to get" is actually the best way to stay on top in the hotel industry.
India’s equity indices fell for the second consecutive session on Tuesday. The BSE Sensex index closed at 85,063.34, 376.28 points or 0.44% lower. The NSE Nifty50 closed at 26,178.70, 71.6 points or 0.27% lower.
In other news, Reliance Industries Limited says it is not getting any Russian oil deliveries this month. Meanwhile, on this week’s Build on Blockchain, how tokenisation can help business financing.
Indian Top Tier Luxury Hotels To Beat Oversupply Blues In 2026
What?
Entering 2026, India’s luxury hotel industry is in for a much better year. While 2025 was defined by a disruptive monsoon and the stabilisation of post-pandemic revenge travel, the coming year is expected to be a period of strategic resilience. Although many owners are currently navigating rapid expansions launched during the boom phase, emerging demand drivers and a robust corporate travel landscape are expected to insulate top-tier players from the stress of new supply.
Most hotel owners anticipate a steady year ahead, underpinned by a structural demand-supply mismatch that is expected to protect both margins and revenues. According to a CRISIL report, the sector’s revenues are projected to grow by 13–14% in FY26, followed by an 11–12% rise in FY27.
“In 2025, we haven’t seen a rise in occupancy, but we have maintained consistent performance, typically in the 60–70% range across most months. While there hasn’t been an upward movement, the positive takeaway is that we have been able to hold occupancies at last year’s level,” said Akhil Arora, CEO & MD of Espire Hospitality Group.
Why?
Market forecasts suggest that occupancy will stabilise at a healthy 74–75% level, indicating that the market can absorb incoming inventory without compromising pricing power. Significantly, the bulk of new supply is concentrated in Tier 2 and Tier 3 cities, leaving metros and top-tier markets with highly favourable dynamics.
“While overall supply is expected to grow at around 9.6% compounded annual growth rate (CAGR) over FY25-30, the top 20 markets are expected to register supply growth at around 6.9% CAGR. Supply growth for metro markets is expected to be even lower at 5.4%,” noted a report by Yes Securities.
Because the majority of the new supply is concentrated in the midscale and economy segments, luxury players in top cities have retained significant headroom as well as pricing power.
“Going forward, supply in the luxury segment is expected to remain constrained due to high barriers to entry, including limited availability of land, extensive regulation, restrictive zoning, high cost of capital and long gestation periods,” said a report by JM Financial.
Most sector analysts believe that the upcycle in the hotels sector can sustain for anywhere between two and five years before supply catches up with demand.
India Energy Week returns for its 4th edition from 27–30 January 2026 in Goa, held under the patronage of the Ministry of Petroleum & Natural Gas and co-organised by FIPI and DMG Events.
As India advances its role in the global energy transition, the event will bring together policymakers, industry leaders and innovators to shape practical pathways toward a secure, sustainable and affordable energy future.
IEW 2026 will spotlight India’s leadership in balancing energy access with decarbonisation, while showcasing strategic investments, emerging technologies and global partnerships driving the next era of energy progress.
Blockchain Brings Capital Where Banks Fear to Tread
What?
Assets owned by businesses can be hard to track on paper and are often ignored when businesses look for funding. Despite running healthy and financially sound businesses, they cannot access capital the way a traditional company with tangible assets can.
And you cannot blame financial institutions for this. Their rules do not allow them to go ahead with a loan application without assets as collateral.
So the challenge for a healthy services-led business is to show on paper the value or the potential of its intangible assets. There is a technology that can help them: it’s called tokenisation, which works on blockchain.
Blockchain creates a shareable record that shows how an asset is performing. The record of the asset, which can be seen by all participants, is then tokenised to represent economic value in small units that can be owned and transferred.
How Can Blockchain Help?
Instead of waiting for financial statements, investors can see payments recorded as they happen, says Atul Khekade, co-founder of XDC Network, which provides blockchain solutions for trade finance, payments, and asset tokenisation.
“Beyond receivables, assets such as logistics fleets can be tokenised and fractionalised, allowing firms to raise capital while retaining operational control, with investor returns linked to usage data tracked on-chain,” Khekade said.
How does tokenisation work for company assets?
This series is brought to you in partnership with Algorand India.
2.82 crore units
That’s the total number of vehicles India retailed in 2025, rising 7.71% year-on-year, the Federation of Automobile Dealers Associations said. President CS Vigneshwar described the year as a “tale of two halves,” with January–August remaining muted despite tax relief and cumulative rate cuts, as buyers stayed value-conscious and financing approvals were selective.
The Turning Point: Momentum turned from September after GST 2.0 rate rationalisation lowered prices across mass segments, lifting affordability and sentiment through December. Rural demand outpaced urban growth, led by strong traction in passenger vehicles beyond metros.
Two-wheelers grew 7.24% at 2.02 crore units
Passenger vehicles grew 9.7% at 44.75 lakh units
Three-wheelers grew 7.21% at 13.09 lakh units
Commercial vehicles grew 6.71% at 10.09 lakh units
Tractors grew 11.52% at 9.96 lakh units
Impact: Looking ahead, dealer sentiment remains upbeat, with nearly 75% expecting growth over the next three months, supported by festive demand, the marriage season, easing borrowing costs and positive rural indicators.
Tariffs Bite Crude
Amid fresh tariff threats by US president Donald Trump, Reliance Industries said on Tuesday that it wasn’t expecting any Russian oil deliveries in January. The cutback by Reliance, the biggest Indian buyer of Russian crude, could bring down India’s imports from the country to the lowest in months.
The Context: The Reliance statement comes after Bloomberg reported on Friday that three Russian crude vessels indicated that they were headed to Reliance’s Jamnagar refinery. The report said that these vessels were carrying 2.2 million barrels of Urals, according to data analytics firm Kpler.
What Now? India already faces 50% tariffs from the US, of which 25% are punitive taxes imposed for buying sanctioned Russian oil. Russian oil has been one of the biggest points of contention, as the two countries have been drawing up a trade deal for months with little headway. Meanwhile, Russia's contribution to Indian crude imports dropped significantly — from 37.9% in the last fiscal year to 33.7% in the current one.
Steelgate Moment
Shares of JSW Steel and Steel Authority of India Limited fell 0.81% and 2.92%, respectively, after Reuters reported that India’s antitrust watchdog, Competition Commission of India (CCI), found the companies breached competition law by colluding on steel prices.
Catch Up Quick: Reuters said it reviewed a confidential order dated October 6 issued by the CCI, which is not public. The probe began in 2021, after a builders’ group accused nine steelmakers of coordinated pricing and supply restrictions.
Future: The CCI can impose penalties of up to three times the profits earned during the violation period or 10% of average annual turnover, whichever is higher, and can also fine individual executives. The companies can still respond before a final order is issued.
Service Sector Loses Pace
India’s services sector growth slowed to an 11-month low in December as new business momentum weakened and hiring stalled, according to a report by HSBC on India Services Purchasing Managers' Index (PMI), compiled by S&P Global. PMI fell to 58.0 from 59.8 in November, remaining in expansion but below initial estimates.
Flashpoint: New business growth eased to its slowest pace since January 2025, with firms citing intensifying competition from lower-cost service providers. Hiring declined marginally, ending a 42-month expansion streak, though most firms kept staffing unchanged.
What's Next? Business confidence slipped for a third straight month to a three-year low. A bright spot emerged in international demand, with export orders improving. Input costs rose moderately, while output price inflation stayed subdued. The composite PMI also slipped to an 11-month low.
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Global Markets Including Asia Zoom Ahead As India Lags
On Episode 767 of The Core Report, financial journalist Govindraj Ethiraj talks to Dinshaw Irani, Managing Director and CEO at Helios Capital as well as Dr Sanjaya Baru, the author of the book Secession of the Successful: The Flight Out of New India.
Global markets including Asia are zooming ahead even as India lags
Reliance stock takes a knock amidst confusion and hasty denials over its oil imports
Long term investing themes for 2026, what could grow and what will not?
Oil prices edge up but largely steady
Indians are not much wanted globally, whether as workers or students. What could this mean globally?
EV sales are slowing down world over
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