India’s hospitality industry is rapidly growing and plays a vital role in boosting the nation’s economy and tourism sector. Renowned for its cultural diversity, rich heritage, and scenic landscapes, India attracts millions of domestic and international tourists every year, making hotels a crucial component of the country’s hospitality services. As of 2024, the market size of India’s hospitality industry is estimated at around US$ 24.61 billion and is expected to grow to approximately US$ 31.01 billion by 2029. In this article, find the best hotel stocks in India for April 2025, based on 5-yr CAGR and other parameters such as, net profit margin and return on investment.
Name | 5Y CAGR (%)↓ | Market Cap (₹ in crore) | 1Y Return (%) |
Indian Hotels Company Ltd | 64.06 | 1,13,782.06 | 29.36 |
Benares Hotels Ltd | 55.30 | 1,446.29 | 21.58 |
Oriental Hotels Ltd | 53.55 | 2,515.21 | 6.29 |
TAJ GVK Hotels and Resorts Ltd | 33.25 | 2,657.29 | 9.82 |
Note: The best hotel stocks listed here are as of April 7, 2025. The stocks are picked from the market cap above ₹1,000 crore, with positive 1-yr returns. The stocks are sorted by 5yr CAGR.
IHCL is one of India’s premier hospitality companies, with its subsidiaries offering a diverse portfolio that spans luxury, upscale/upper upscale, and lean luxury/midscale segments. The company’s operations extend across four continents, 12 countries, and more than 100 cities worldwide. In Q3, the company’s revenue rose by 29% to ₹2,592 crore. Profit after tax (PAT) grew by 29%, reaching ₹582 crore.
Key Metrics:
Benares Hotels Ltd was incorporated in 1971. The company is in the business of operating hotels. In Q3 FY 2024-25, the company reported a revenue of ₹40.1 crore, marking an increase from ₹34.5 crore in Q3 FY 2023-24. PAT also saw growth, reaching ₹13.6 crore compared to ₹11.3 crore in Q3 of the previous fiscal year.
Key Metrics:
Oriental Hotels Limited, an associate company of The Indian Hotels Company Limited (IHCL), operates a portfolio of seven prestigious properties. These include Taj Coromandel and Taj Fisherman’s Cove Resort & Spa in Chennai, and more. In Q3 FY 2024-25, Oriental Hotels Limited reported a revenue of ₹122.05 crore, marking a growth from ₹106.07 crore in Q3 FY 2023-24. PAT declined to ₹13.99 crore in Q3 FY 2024-25 from ₹16.43 crore in Q3 FY 2023-24.
Key Metrics:
Taj GVK Hotels & Resorts Limited, established in 1995, is a joint venture between the Hyderabad-based GVK Group and The Indian Hotels Company Limited (IHCL). The company is involved in owning, operating, and managing hotels, resorts, and palaces under the prestigious “TAJ” brand. In Q3 FY 2024-25, the company reported a revenue of ₹12,866 lakh crore, marking a growth from ₹11,193 in Q3 FY 2023-24. PAT rose to ₹3,389 lakh in Q3 FY 2024-25 from ₹2,421 lakh in Q3 FY 2023-24.
Key Metrics:
Name | Net Profit Margin (%)↓ | Market Cap (₹ in crore) |
Ventive Hospitality Ltd | 33.62 | 16,067.66 |
Benares Hotels Ltd | 29.10 | 1,446.29 |
ITC Hotels Ltd | 26.62 | 41,710.83 |
EIH Ltd | 23.37 | 22,888.33 |
TAJ GVK Hotels and Resorts Ltd | 22.56 | 2,657.29 |
Note: The best hotel stocks listed here are as of April 7, 2025. The stocks are picked from the market cap above ₹1,000 crore and are sorted by net profit margin.
Name | Return on Investment (%)↓ | Market Cap (₹ in crore) |
Benares Hotels Ltd | 26.62 | 1,446.29 |
Ventive Hospitality Ltd | 26.54 | 16,067.66 |
EIH Associated Hotels Ltd | 17.52 | 2,157.75 |
Royal Orchid Hotels Ltd | 16.37 | 1,071.09 |
TAJ GVK Hotels and Resorts Ltd | 16.11 | 2,657.29 |
Note: The best hotel stocks listed here are as of April 7, 2025. The stocks are picked from the market cap above ₹1,000 crore and are sorted by return on investment.
India’s hospitality industry is poised for significant growth, with its market size projected to reach around US$ 24.61 billion in 2024 and expected to expand to US$ 31.01 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.73% during the forecast period of 2024–29.
The Indian hotel sector has witnessed remarkable expansion in recent years, largely fueled by a combination of economic, social, and technological advancements. Hotels play a vital role in enhancing tourism, driving economic progress, and creating employment opportunities. This case study delves into the development of India’s hotel industry, examining its current landscape, growth journey, challenges, and future outlook.
Apart from these stocks, there can be other stocks in the hotel sector in India. Before investing, you must thoroughly research a company’s business model, financial health, and long-term prospects. Understanding market trends and industry dynamics is crucial. Always align your investments with your financial goals and risk appetite.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 7, 2025, 3:14 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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