Patanjali Keswani, Chairman and Managing Director of New Delhi-based Lemon Tree Hotels , expects the hospitality industry to see strong growth in the second half of 2025-26 (FY26) despite challenges from the recent goods and services tax (GST) changes.

Keswani explained that while the GST rate cut would help lift demand by making rooms cheaper, the removal of input tax credit could dent margins slightly. “There will obviously be an uplift in demand because the price comes down, but on the other end, there will be a loss of input credit,” Keswani said, estimating the overall margin impact at about 2%.

Keswani remains confident that the stronger demand will offset the loss. He expects business to accelerate in the coming months, especially after the festive season, with November to mid-D

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