Hotel and Restaurant Profit & Loss (P&L) Statement and Report – Complete Guide
Running a hotel or restaurant without tracking your Profit and Loss (P&L) Statement is like driving blindfolded. The P&L report is the backbone of financial management—it tells you if your property is actually profitable, where money is being spent, and which revenue streams are performing.
In India, where the hospitality industry is competitive and GST/Ind AS compliance is mandatory, understanding and preparing an accurate P&L is essential.
🔑 What is a P&L Statement in Hospitality?
A Profit & Loss (P&L) Statement—also called the Income Statement—summarises all revenues, costs, and expenses during a period (monthly, quarterly, annually).
- For Hotels: Revenue comes from rooms, F&B, banquets, spa, and other services.
- For Restaurants: Revenue comes from food sales, beverages, deliveries, and catering.
The P&L shows:
Revenue – Expenses = Profit (or Loss)
🏨 Hotel P&L Statement – Structure & Example
A typical hotel P&L statement in India looks like this:
| Line Item | Amount (₹) (Example) |
|---|---|
| Room Revenue | 1,20,00,000 |
| Food & Beverage Revenue | 60,00,000 |
| Other Income (Spa, Parking, etc.) | 10,00,000 |
| Total Revenue | 1,90,00,000 |
| Less: Food & Beverage COGS | 25,00,000 |
| Gross Profit | 1,65,00,000 |
| Less: Payroll & Benefits | 55,00,000 |
| Less: Utilities & Operating Expenses | 40,00,000 |
| Less: Marketing & Admin | 20,00,000 |
| EBITDA (Operating Profit) | 50,00,000 |
| Less: Depreciation | 10,00,000 |
| Less: Finance Costs | 8,00,000 |
| Profit Before Tax (PBT) | 32,00,000 |
| Less: Taxes | 9,00,000 |
| Net Profit (PAT) | 23,00,000 |
✅ This format is similar to Park Hotels’ FY2020 report, where they declared:
- Total Income: ₹426.90 Cr
- Consumption of provisions: ₹63.03 Cr
- Employee Benefits: ₹90.04 Cr
- Other Expenses: ₹180.48 Cr
- PAT: ₹23.43 Cr
🍴 Restaurant P&L Statement – Structure & Example
Restaurants follow a similar P&L, but with more focus on food cost and labour cost.
| Line Item | Amount (₹) (Example) |
|---|---|
| Food Sales | 45,00,000 |
| Beverage Sales | 15,00,000 |
| Catering & Delivery | 5,00,000 |
| Total Revenue | 65,00,000 |
| Less: Cost of Goods Sold (COGS) | 22,00,000 |
| Gross Profit | 43,00,000 |
| Less: Payroll & Benefits | 15,00,000 |
| Less: Rent & Utilities | 7,00,000 |
| Less: Marketing & Admin | 5,00,000 |
| EBITDA | 16,00,000 |
| Less: Depreciation | 4,00,000 |
| Less: Finance Costs | 2,00,000 |
| Net Profit Before Tax | 10,00,000 |
| Less: Taxes | 3,00,000 |
| Net Profit | 7,00,000 |
✅ Example: Barbeque Nation FY2025 reported:
- Revenue: ₹972.5 Cr
- Operating & direct expenses: ₹326.9 Cr
- Employee expenses: ₹229.3 Cr
- Depreciation: ₹140.6 Cr
- Other expenses: ₹272.9 Cr
- PBT: –₹35.8 Cr
📊 Real-World Examples (India)
Here are summaries from actual Indian hospitality P&Ls:
| Company | Revenue (₹ Cr) | COGS/Direct Expenses (₹ Cr) | Employee Costs (₹ Cr) | Other Exp. (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|---|
| Park Hotels (FY20) | 426.9 | 63.0 | 90.0 | 180.5 | 23.4 |
| Indian Hotels (Taj) (FY25) | 5,145 | 350.3 | 942.3 | 1,591.9 | 1,396 |
| Barbeque Nation (FY25) | 972.5 | 326.9 | 229.3 | 272.9 | –35.8 |
📑 How to Prepare a P&L (Step-by-Step for India)
- Record Revenues → Rooms, food, beverages, spa, delivery, catering.
- Subtract Direct Costs (COGS) → Food ingredients, beverages, housekeeping supplies.
- Subtract Payroll → Salaries, wages, gratuity, PF, ESIC.
- Add Overheads → Rent, utilities, marketing, OTA commissions, admin.
- Deduct Depreciation & Interest → Per Ind AS 16 & Ind AS 116 (leases).
- Account for Taxes → Income tax, GST (excluded from P&L revenue, but important).
- Arrive at Net Profit → Bottom line result.
📌 Compliance in India (Ind AS + GST)
- Ind AS Compliance – Hospitality companies in India prepare statements under Ind AS, aligned with IFRS. Key standards include:
- Ind AS 115 – Revenue recognition (for room bookings, banquet contracts).
- Ind AS 116 – Lease accounting (hotels often lease land/buildings).
- Ind AS 16 – Depreciation of property, plant & equipment.
- GST Rules (as of 2025):
- Hotel rooms up to ₹7,500/night → 12% GST
- Hotel rooms above ₹7,500/night → 18% GST
- Restaurants (standalone) → 5% GST (no input credit)
- Restaurants inside luxury hotels (>₹7,500/night tariff) → 18% GST
📌 Best Practices for Hotels & Restaurants
- Track Food Cost % = (Food COGS ÷ Food Sales) × 100
- Monitor Labour Cost % (30–35% is common benchmark in India).
- Use Departmental P&Ls (separate F&B vs Rooms vs Spa) to see true performance.
- Automate with POS + PMS integration to avoid manual errors.
- Compare month-on-month trends and use KPIs like GOPPAR (Gross Operating Profit per Available Room).
✅ Conclusion
The Profit and Loss (P&L) Statement is the single most important financial report for hotels and restaurants in India. It not only helps in compliance with Ind AS and GST, but also guides owners and managers in making pricing, cost control, and investment decisions.
👉 Hoteliers and restaurateurs should prepare monthly P&Ls, compare against budgets, and adopt best practices to keep costs under control.
📥 Free Download: Hotel & Restaurant P&L Template
