Ever expanding domestic tourism, increasing foreign tourist arrivals, forex earnings growth, high airline passenger numbers and muted supply growth has put the Indian hotels industry on an upswing. The recent trends and statistics of the industry as well as improving domestic macroeconomic data suggest the road ahead will bring higher room revenues and profit margins for the hotels industry in the country. According to the market reports Indian hotel industry was able to overthrow the 65% occupancy rates threshold last year (2017). The yearly report titled ‘Hotels in India Trends & Opportunities’ by the global hospitality consulting firm HVS suggests that branded hotels in India touched the occupancy rate of 65.6 per cent in financial year 2017, as against 63.3 per cent in the previous year. It is after a decade that the Indian hotels industry has crossed the 65 per cent occupancy rate. The last time it happened in financial year 2008. The increase in the occupancy rate of the hotels was further complimented with an increase in in weighted average rate by 2.4 per cent to INR 5,658 in financial year 2017. This growth in occupancy of hotels and average rate caused the nationwide RevPAR to go up by 6 per cent to to be at INR 3,709. Push from the tourism boom Travel and tourism has become a significant industry in the country over the last few years, thanks to the government initiatives and policies along with increasing foreign tourist arrivals. The World Trade and Tourism Council ranked India 18th in business travel and also predicted that it climb up soon to be amongst the top 5 ranks. Not just that, the travel & tourism industry provided employment to approximately 41.6 million people in the year 2017 and accounted for 8 per cent of the total employment opportunities generated in India in that year. Add to that, the increasing number of foreign tourist arrival (FTAs) as well as soaring domestic travelers. FTAs stood at 10.177 million in calendar year 2017 and the first two months of 2018 it stood at 2.12 million. It is expected to grow at a CAGR of 7.1 per cent during 2005–2025. The domestic tourist visits (DTVs) on the other hand stood at 1.65 billion (provisional) in 2017, a growth of 15.5 per cent over the last year. The ever expanding growth of the Indian travel and tourism industry has a cascading effect on the hotels industry, boosting the occupancy rate and the average room rate.