Direct Answer
55 SEC filers are classified under the Standard Industrial Classification codes that describe the hotels, restaurants & leisure industry, and their latest annual reports show $323.5 billion of combined revenue and a median operating margin of 5.2%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Hotels, restaurants and leisure includes lodging, dining, cruises, casinos and recreation businesses that sell experiences to consumers. Spending is discretionary and follows travel, income and confidence. The first numbers to compare across companies here are same-venue sales, occupancy and average rate and margin.
Key Industry Metrics
- Same-venue sales: Sales growth at venues open at least a year. It shows whether existing operations are drawing more spending, and separates this from the effect of new openings.
- Occupancy and average rate: Share of rooms filled and the average rate for lodging operations. Together they show whether travel demand or pricing is driving revenue.
- Margin: Operating profit as a share of revenue across the group. It varies by business line, so a mix shift between hotels, restaurants and casinos can change the total.
- Traffic: Count of visits or guests across venues. It shows demand before price effects, and rising traffic with steady prices is a healthier sign than price-led growth.
- Capital spending: Money spent on new venues, upgrades and equipment. These businesses need ongoing reinvestment, so spending high relative to cash flow can limit returns.
Primary Macro Drivers
- Consumer discretionary spending: Dining, travel and recreation are optional, so income and confidence set traffic and spending across the group.
- Travel demand: Trips set hotel occupancy, cruise bookings and park attendance, so travel trends move sales in the lodging and leisure businesses.
- Labor and food costs: Service labor and ingredients are large costs, so inflation affects margin when prices cannot be raised.
- Pricing: Rate and menu changes affect revenue per guest and traffic, so pricing power shows in same-venue sales.
Major Risks
- Economic slowdown: Households cut back on outings and trips, lowering traffic and rates while fixed venue costs remain.
- Labor and cost inflation: Wages and supplies climbing faster than prices squeeze margins; watch the cost lines in margin discussions.
- Health and safety events: Outbreaks, accidents and disasters cause closures and cancellations, which hit traffic and occupancy suddenly.
- Competition: Rival venues compete on price and experience, limiting pricing and share; watch same-venue sales against peers.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Hotels, Restaurants & Leisure Filers in the SEC Record
55 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 5812, 7011, 7990. Their latest fiscal years end between 2025 and 2026, and together they reported $323.5 billion of revenue. Median revenue growth over the prior year was 3.5%. Median operating margin was 5.2% and median net margin 1.9%. Median total liabilities were 86% of total assets, and 34 of 55 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Walt Disney Co | $94.4 billion | 3.4% | 18.6% | 13.1% | FY 2025 |
| Mcdonalds Corp | $26.9 billion | 3.7% | 46.1% | 31.9% | FY 2025 |
| Marriott International Inc | $26.2 billion | 4.3% | 15.8% | 9.9% | FY 2025 |
| Aramark | $18.5 billion | 6.4% | 4.3% | 1.8% | FY 2025 |
| Mgm Resorts International | $17.5 billion | 1.7% | 5.7% | 1.2% | FY 2025 |
| Darden Restaurants Inc | $13.2 billion | 9.4% | 12.0% | 9.1% | FY 2026 |
| Las Vegas Sands Corp | $13.0 billion | 15.2% | 21.6% | 12.5% | FY 2025 |
| Hilton Worldwide Holdings Inc. | $12.0 billion | 7.7% | 22.4% | 12.1% | FY 2025 |
The 8 largest of 55 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Hotels, Restaurants & Leisure guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Hotels, Restaurants & Leisure industry?
Key performance indicators for the Hotels, Restaurants & Leisure industry include: Same-venue sales, Occupancy and average rate, Margin, Traffic, Capital spending. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Hotels, Restaurants & Leisure industry?
The Hotels, Restaurants & Leisure industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Hotels, Restaurants & Leisure industry?
The primary risks for Hotels, Restaurants & Leisure companies include: Economic slowdown, Labor and cost inflation, Health and safety events, Competition. Investors should assess each company's exposure to these factors and its track record of navigating them.