Hotels, restaurants & tourism.

Hotels, restaurants & tourism is a small, highly cyclical, high-margin listed core sitting inside a large, mostly informal service industry, adding an estimated ₹3.0 lakh crore of GVA in FY26 (0.95% of national GVA) on ₹6.6 lakh crore of household spend plus US$40.6 bn of inbound tourism receipts. About 70% of eating out and most lodging remain unorganised, while a listed sector worth ₹4.0 lakh crore of market cap on ₹0.09 lakh crore of PAT is built on roughly 200,000 branded hotel rooms (RevPAR up ~60% since FY20) and quick-service restaurant chains whose profits have lagged their store growth. GVA fell ~40% in FY21 before compounding at ~13% a year since FY23 as room rates repriced and eating out normalised. The base case has the industry outgrowing the economy, reaching ₹4.9 lakh crore by FY30 and ₹8.5 lakh crore by FY35, driven by eating-out share gains, rising air travel per head, growing branded room supply, and inbound tourism catching up to India's share of world GDP.

Household spend on restaurants & hotels

6.6 ₹ LC · FY26

Household spend, share of PFCE (COICOP 11)

3.4 % · FY26

Inbound tourism receipts

40.6 US$ bn · FY26

Outbound travel spend

65.5 US$ bn · FY26

Branded hotel rooms

~2.0 lakh, of ~30 lakh total rooms · FY26

Employment

~12 mn (1.9% of workers) · FY26

Listed hospitality market cap

4.0 ₹ LC · FY26

Listed hospitality PAT

9,402 ₹ cr · FY26