As ITC Hotels prepares for its demerger from the ITC Group, the company has announced ambitious plans to grow its portfolio from 140 to over 200 hotels across India. This move marks a significant milestone in ITC Hotels’ journey, as it transitions into a standalone entity, aiming for accelerated growth and a sharper focus on the hospitality sector.
Previously operating as a division of the larger ITC conglomerate—an Indian-listed company with interests primarily in consumer goods—the hotel business will now gain operational autonomy. The demerger has been approved by the ITC board, with shareholder allocations finalized for the new entity. This separation is expected to provide ITC Hotels with greater flexibility to expand and innovate.
ITC Hotels currently boasts 140 properties with 13,000 rooms, of which 45% are owned and 55% are operated through management contracts. The company is now shifting further toward an asset-light growth model, focusing on management agreements to increase its market presence.
Operating under six distinct brands—ITC Hotels, Fortune, Mementos, Storii, WelcomHeritage, and Welcomhotel—the group has added 28 managed hotels since November 2022. Over the next two years, ITC Hotels plans to maintain this momentum, aiming to launch approximately one hotel every month.
For the quarter ending September 2024, ITC Hotels reported a stellar performance with revenues increasing by 12.1% year-on-year and profit before tax rising by 20.2%. The group also expanded its EBITDA margin by 0.7%, driven by cost efficiency and higher RevPAR amid strong booking demand.
Recent openings reflect ITC Hotels’ diverse portfolio and commitment to capturing India’s rich cultural heritage:
– Fortune Beachfront in Puri: A sea-facing resort catering to leisure travelers.
– Storii Jaisalmer: A 131-room property in the Thar Desert, perfect for weddings and celebrations.
– Welcomhotel Jabalpur: A 122-room property inspired by Bundela architecture.
– Welcomhotel Belagavi: A 116-room property set on six acres, offering views of local windmills.
The pipeline includes new Welcomhotels in Delhi, Gangtok, and Gwalior, as well as Storii hotels in Jawai and Jaipur, showcasing the brand’s focus on unique locations.
ITC Hotels made its international debut in April 2024 with the launch of ITC Ratnadipa in Colombo, Sri Lanka. This landmark property on the Indian Ocean features 352 rooms, suites, and serviced apartments housed in two towers connected by a sky bridge. With nine dining options and a place in Marriott’s Luxury Collection, the hotel caters to global travelers and Marriott Bonvoy loyalty members.
With a robust expansion plan and a strong financial foundation, ITC Hotels is poised to redefine its presence in India and abroad. The demerger marks a new chapter, empowering the group to focus exclusively on hospitality and tap into emerging opportunities in the luxury, heritage, and lifestyle segments.
