India’s hotel industry is on a roll, riding a wave of demand that’s outpacing supply—and by a comfortable margin, according to Axis Capital’s latest report. Demand is set to grow at a brisk 12% CAGR for FY24-27, outshining the modest 9% CAGR expected in supply. Structural drivers are paving the way for sustained growth. Leisure travel, buoyed by rising disposable incomes and wealthier households, has been a consistent star, accounting for nearly half of total hotel demand. Business travel, after years of decline, is primed for a rebound as corporate profits and travel budgets recover. Sure, the sector has its risks—seasonality, economic slowdowns, and new market entrants could shake things up. But for now, de-leveraged portfolios and better cash flows have set a solid foundation.