Everyone enjoys a good vacation, especially in India, where over 18.9 million foreign tourists visited in 2023. In recent years, the Indian tourism sector has received a huge boost from rising incomes, better transportation, and developed tourist destinations.
As of January 2025, India’s tourism industry stood at $256 billion, and in the next ten years, it is expected to reach $523 billion. The growth in the tourism industry can create significant job opportunities, and it can be beneficial for the transport, food and hospitality sectors.
Let us take a look at the top hotel stocks that can benefit from this development in the coming years.
An interesting read: Case Study: Long-Term Gains from India’s Top Performing Stocks
Top hotel stocks in 2025
Let us look at the top hotel, resorts and restaurant stocks in India, in terms of market capitalisation as on 16th April, 2025.
Consolidated financial as of FY24 and 9MFY25
| Particulars (₹ Crores) | IHCL | ITC Hotels | EIH | Chalet | Ventive | Lemon tree | MHRIL |
| Market Cap. (16th April, 2025) | 1,19,049 | 41,936 | 23,092 | 18,139 | 17,433 | 11,337 | 6,216 |
| Sales (FY24) | 6,769 | 2,277 | 2,511 | 1.417 | 478 | 1,071 | 2,705 |
| PAT (FY24) | 1,330 | 417 | 678 | 278 | 166 | 182 | 116 |
| Sales- 9MFY25 | 5,909 | 2,888 | 1,916 | 1,196 | 285 (6MFY25) | 907 | 2,002 |
| PAT- 9MFY25 | 1,476 | 511 | 509 | 18 | 50(6MFY25) | 135 | 52 |
| 1-year return % | 43.3% | N/a | -20.9% | -2.29% | Na | 3.61% | -23.1% |
(Disclaimer: ITC Hotels has not presented its results independently (as of 16th April, 2025) after the demerger for ITC Limited on 1st Jan 2025, hence the numbers here are from ITC Limited’s hotel business prior to the demerger)
Indian Hotels Company Limited
Indian hotels limited is a Tata group company which operates a chain of luxury hotels and resorts across 12 countries. The company runs hotels under the Taj, Vivanta, Ginger, Ama, Gateway, and other brand names.
As of the October-December quarter of FY25, IHCL operates over 360 hotels and resorts. In the same time period, out of the total consolidated operating revenue of 2,262 crores, 50.3% was contributed by room revenue, followed by the food and beverage segment, which contributed 35.1%.
The company aims to operate over 700 hotels and resorts by 2030.
| Particulars | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 1,575 | 3,056 | 5,810 | 6,769 | 5,909 |
| Operating profit | -362 | 405 | 1,805 | 2,160 | 1,913 |
| Profit before tax | -850 | -258 | 1,295 | 1,666 | 1,858 |
| Profit after tax | -796 | -265 | 1,053 | 1,330 | 1,476 |
ITC Hotels Limited
ITC hotels limited was demerged from ITC limited on 1st January 2025. This company has been operational since 1975, but it was listed on the stock exchange on January 29, 2025, after the demerger.
The company has a network of more than 140 hotels spread across more than 90 locations. The company operates its hotels under six band names: ITC, Mementos, Storii, Welcomehotel, Fortune and WelcomHeritage.
The goal is to operate over 200 hotels in the next five years. ITC hotel business made a revenue of ₹931 crores in Q3FY25.
| Particulars | FY24 | 9MFY25 |
| Sales | 2,887 | 2,277 |
| Operating profit | 691 | 572 |
| Profit after tax | 511 | 416 |
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EIH limited
EIH hotels limited operates 5-star luxury hotels under the brand names Oberoi, Trident and Maiden. The company opened its first hotel in 1965. It operates 22 hotels in India and 7 hotels internationally as of Q3FY25.
The company also provides air charter services, cruises, and catering services to airlines and also operates lounges in airports. The company has 19 properties in its pipeline that will be operational in the future years
| Particulars | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 494 | 985 | 2,019 | 2,511 | 1,916 |
| Operating profit | -354 | -34 | 599 | 927 | 667 |
| Profit before tax | -476 | -93 | 454 | 917 | 673 |
| Profit after tax | -375 | -95 | 329 | 678 | 509 |
Chalet Hotels Limited
Chalet hotels is a leading hospitality company in India founded in 1986 and is based in Mumbai. The company manages and operates luxury hotels across the country. It currently operates 10 hotels as of Q3FY25.
The company currently has 3,052 keys (or rooms) spread across its properties. Chalet hotels is also involved in the business of renting out office spaces and real estate development. The company plans to expand its portfolio by 1,172 rooms by the fiscal year 2029.
| Particulars | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 286 | 508 | 1,128 | 1,417 | 1,196 |
| Operating profit | 7 | 98 | 453 | 585 | 495 |
| Profit before tax | -248 | -153 | 273 | 269 | 275 |
| Profit after tax | -139 | -81 | 183 | 278 | 19 |
Ventive Hospitality Limited
Ventive Hospitality owns, develops and manages luxury hotels. As of Q3FY25, the company owns 11 hotels and 2,036 keys in India and Maldives. The company also owns 70+ luxury restaurants (including hotels), and develops office spaces.
The company has three projects in its growth pipeline, one in Varanasi and two projects internationally. The company’s initial public offering (IPO) took place in December 2024.
In the first nine months of FY25, the company earned 55% revenue from rooms, 35% revenue from food and beverage, and 10% revenue from other businesses.
| Particulars | FY21 | FY22 | FY23 | FY24 | 6MFY25 |
| Sales | 183 | 229 | 431 | 478 | 285 |
| Operating profit | 108 | 116 | 239 | 284 | 151 |
| Profit before tax | 8 | 36 | 159 | 205 | 88 |
| Profit after tax | 6 | 29 | 131 | 166 | 50 |
Lemon Tree Hotel Limited
Lemon Tree Hotels Limited owns and operates a wide range of hotels, from upscale or luxury to economy. The company owns more than 110 hotels, with 10,317 keys in 50+ locations as of the third quarter of FY25.
The company operates under the Lemon tree, Redfox, Aurika, and Keys brand names. The hotel chain development pipeline includes 88 new hotels with 6,068 new rooms. The company earned a total revenue of ₹355.9 crores in Q3FY25.
| Particulars | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 252 | 402 | 875 | 1,071 | 907 |
| Operating profit | 57 | 119 | 448 | 523 | 430 |
| Profit before tax | -219 | -145 | 178 | 216 | 174 |
| Profit after tax | -187 | -137 | 141 | 182 | 135 |
Mahindra holidays & resorts India ltd.
MHRIL, or Mahindra Holidays & Resorts India Ltd is a part of the Mahindra Group and provides hospitality and leisure services. MHRIL was founded in 1996 and offers family holidays through memberships. Its brand Club Mahindra has over 3,00,000 members.
MHRIL and its subsidiary, Holiday Club Resorts (HCR), had 159 resorts and timeshare properties as of December 31, 2024. MHRIL had 126 resorts across India and abroad, while HCR, a leading European vacation ownership company based in Finland, had 33 timeshare properties.
| Particulars | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 1,730 | 2,013 | 2,517 | 2,705 | 2,002 |
| Operating profit | 241 | 323 | 481 | 522 | 374 |
| Profit before tax | 2 | 111 | 171 | 160 | 90 |
| Profit after tax | -14 | 68 | 114 | 116 | 52 |
Also read: What Makes a Stock the Best for Long-Term Investments?
Conclusion
The growth in the tourism industry can benefit these hotel shares in the coming decades. With rising incomes, more Indians can afford expensive restaurants and luxury high-end hotels. Foreign tourists in India are also increasing rapidly. Before investing in hotel stocks, investors should conduct in-depth research.
FAQs
Why are hotel stocks considered a good long-term investment in India?
The Indian tourism sector is on the rise. Factors like rising incomes, infrastructure development at tourist destinations, government push, etc, can benefit the hotel companies in the long run. Most Indian hotel companies are executing big expansion plans, indicating their confidence in the tourism industry.
What are the risks of investing in hotel stocks?
Hotel stocks can be cyclical. During an economic downturn, people first and foremost curb their spending towards luxuries like tourism, which can impact these stocks negatively in short-medium terms. Hotel companies also face stiff competition in the market from other players.
What financial metrics should be tracked for hotel companies?
Along with the traditional metrics like operating margins, PAT growth, market capitalisation, debt-to-equity ratio, etc, other key metrics for hotel stocks include occupancy rates, average room revenue (ARR), revenue per available room (RevPAR), food and beverage revenue share, and future hotel pipeline. These provide insights into a company’s potential and financial health.
Which is the biggest hotel company in the world?
The US-based Marriott International is the biggest hotel company (in the world) in terms of market value. The company has a market capitalisation of ₹5.25 lakh crores as of 16th April 2025. In the 2024 fiscal the company earned a revenue of ₹2.11 lakh crores and a net profit of ₹32,286 crores.
How is the Indian government helping the hotel industry?
In the Union Budget 2025 to boost tourism infrastructure, the government of India allocated ₹20,000 crore throughout the country. This initiative will enhance the top 50 tourist destinations by collaborating with state governments to provide land for hotels and related facilities.
