ITC Hotels Ltd Steps Forward As India’s Independent Hospitality Leader With Successful Dual Exchange Listing To Fuel Ambitious Expansion Plans

ITC Hotels Ltd emerges as a separate entity from ITC Ltd’s Hotels division effective January first, 2025, marking a significant milestone in the company’s journey. The newly formed ITC Hotels Ltd successfully listed its equity shares on both the National Stock Exchange (NSE) of India and BSE Limited on January twenty-ninth, 2025. This strategic move underscores ITC’s intent to unlock value and sharpen focus on the hospitality sector through a dedicated platform.

The financial statements for the comparative period ending March thirty-first, 2024, have been restated to reflect the Scheme of Arrangement as though it had been operative since the inception of ITC Hotels Ltd on July twenty-eighth, 2023. Accordingly, the results for both the quarter and the full year ending March thirty-first, 2025, encompass the performance of ITC Hotels Ltd along with the demerged operations transferred under the Scheme, ensuring a consistent and transparent financial presentation aligned with regulatory accounting standards.

Pioneering Responsible Luxury

ITC Hotels has positioned itself as a trailblazer in sustainable luxury hospitality. In 2024, it became the first Indian hotel chain to receive the prestigious US Green Building Council (USGBC) Leadership Award for Organizational Excellence. This prestigious honor underscores ITC Hotels’ steadfast dedication to sustainable practices and outstanding operational performance.

Globally, ITC Hotels is recognized for its unmatched sustainability credentials. It proudly holds the highest number of LEED Platinum certifications worldwide, with twenty-three properties achieving this elite status. Further cementing its green credentials, twelve of its hotels are LEED Zero Carbon certified—making ITC the first hotel group in the world to achieve this feat—while eight hotels have attained LEED Zero Water certification, also a global first. The company has consistently surpassed the 2030 sectoral emission targets for four consecutive years and aligns twelve of its properties with the 2050 emission reduction goals set forth by the COP 21 climate accord.

Robust Macroeconomic Backdrop

India’s economy continues to shine brightly amid a global slowdown. According to the Ministry of Statistics and Programme Implementation (MOSPI), India’s real GDP is estimated to grow by six point five percent in the fiscal year 2025, with similar momentum expected in fiscal 2026. This robust growth is supported by strong fundamentals, including accelerating urbanization, favorable demographics, and sustained expansion in the services sector.

The International Monetary Fund (IMF) projects India’s nominal per capita GDP to grow at a compound annual growth rate (CAGR) of 9.2 percent over the next five years, highlighting a positive long-term outlook. Rising domestic demand and consumption levels further enhance prospects for the hospitality industry, with room demand anticipated to outpace supply growth.

Additional growth drivers include the rebound in foreign tourist arrivals—which remain about twelve percent below pre-pandemic levels—and government initiatives focused on improving infrastructure, connectivity, employment, and tourism promotion. Together, these factors create an enabling environment for the Indian hospitality sector’s sustained expansion.

Impressive Performance Highlights

ITC Hotels ranks as one of India’s rapidly expanding hospitality groups, featuring a collection of more than one hundred forty properties and over thirteen thousand three hundred guest rooms. Its diverse brand offerings span six distinctive segments: ‘ITC Hotels’ (Luxury), ‘Mementos’ (Luxury Lifestyle), ‘Welcomhotel’ (Upper Upscale & Upscale), ‘Storii’ (Boutique Premium), ‘Fortune’ (Mid-Market to Upscale), and ‘WelcomHeritage’ (Leisure & Heritage).

The company posted a strong performance during the financial year 2024-25, driven by operational excellence and elevated guest satisfaction. Room revenues maintained a strong growth trajectory, supported by demand across retail, contracted, wedding, and crew segments. The Average Daily Rate (ADR) averaged approximately ₹12,500 with occupancy levels at 73 percent, reflecting robust year-over-year growth propelled by demand in key markets and strategic revenue management.

Food and Beverage (F&B) revenues also grew substantially, fueled by innovative culinary offerings and strategic refreshes of select outlets. Banqueting and event catering, especially within the wedding and institutional sectors, continued to be a vital contributor, reinforcing F&B as a cornerstone of the business.

EBITDA margins expanded to 36 percent in FY25, benefiting from higher Revenue per Available Room (RevPAR), growth in F&B revenue, increased management fees, cost optimization initiatives, and operational leverage. In line with ITC’s ‘asset-right’ strategy, a significant portion of recent room additions came through management and franchise contracts, enabling growth with lower capital intensity by collaborating with asset owners while leveraging the brand’s operational expertise.

The company is expanding aggressively into Tier 2 and Tier 3 cities, where demand for premium hospitality is rapidly rising. Interest from property owners to associate with ITC’s iconic brands remains high, resulting in a strong pipeline of over fifty hotels with more than 4,500 rooms in various stages of development, with a focus on brownfield assets. ITC Hotels aims to operate 220 hotels with over 20,000 rooms by 2030.

The company is steadily expanding its owned portfolio, progressing with greenfield developments in Puri alongside constructing an additional wing at Welcomhotel Bhubaneswar. Additionally, a strategic land bank in Visakhapatnam is being developed to further bolster ITC’s owned hotel portfolio.

Global Footprint and Digital Innovation

The company’s maiden international property, ITC Ratnadipa, launched in April 2024 in Colombo, Sri Lanka. This upscale hotel enhances Sri Lanka’s hospitality scene, catering specifically to sophisticated business and leisure guests. The property achieved EBITDA profitability by December 2024, underscoring its early success.

Digital innovation remains a key pillar of ITC Hotels’ strategy. The comprehensive ITC Hotels app enhances guest experience by enabling food delivery, room and table bookings, room automation, entertainment control, loyalty benefits, exclusive offers, and more, thereby driving guest acquisition, revenue growth, and operational efficiency.

Quarter Four Fiscal Year 2025 Highlights

The company recorded its best-ever quarterly performance in Q4 FY25:

Revenue from operations grew by 13 percent.
Room revenues surged 16 percent, with ADRs averaging ₹15,000 (a 14 percent increase) and occupancy climbing to 79 percent; RevPAR rose by 17 percent.
Food and beverage revenues grew by twelve percent, driven by robust event catering and exceptional performance across key outlets.
EBITDA margins improved by 350 basis points year-over-year, reaching 40 percent.

This outstanding growth reaffirms ITC Hotels’ strong market positioning and its unwavering commitment to sustainability, innovation, and strategic expansion as it charts a promising path forward in the luxury hospitality segment.

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