ITC Hotels reported its strongest-ever third-quarter performance, posting sharp growth across revenue and profits as robust demand, pricing strength and operational efficiencies continued to support margins. For the quarter ended December 31, 2025, consolidated revenue from operations rose 21 per cent year-on-year to INR1,231 crore, while EBITDA increased 23 per cent to INR467 crore. Profit after tax (before exceptional items) jumped 42 per cent to INR307 crore, marking a record Q3 for the company.
The strong showing came against a supportive macroeconomic backdrop. India retained its position as the world’s fastest-growing major economy, with real GDP growth accelerating to 8.2 per cent in the September quarter. With growth projected at 7 per cent in Q3 and 6.5 per cent in Q4, full-year GDP growth is estimated at 7.4 per cent, significantly higher than the previous fiscal. Improving domestic air traffic trends and stable inflation further underpinned travel demand during the period.
The hospitality sector benefited from strong festive spending, wedding-related travel and heightened MICE activity, particularly in the luxury and upper-upscale segments. Industry demand continued to outpace supply, supporting higher room rates and occupancies. Recent policy measures such as GST rate rationalisation and monetary easing are expected to sustain discretionary spending, keeping the outlook positive in the near to medium term.
At the standalone level, ITC Hotels’ performance was driven by higher occupancies and average daily rates across key markets. Room revenue grew 12 per cent during the quarter, supported by strong corporate travel, weddings and MICE demand. Average daily rates rose 9 per cent, while occupancy expanded by 290 basis points, resulting in a 13 per cent growth in consolidated RevPAR. The company maintained a RevPAR premium of 48 per cent over the industry, reflecting its brand positioning and service standards.
Food and beverage revenue increased 8 per cent year-on-year, led by banqueting and large social events. Culinary innovation and strong execution across restaurants continued to drive guest engagement. EBITDA margin for the quarter stood at 39 per cent, expanding by 110 basis points on a comparable basis, aided by operating leverage, higher management fees and sustained cost-control measures, including procurement efficiencies and energy optimisation.
During the quarter, ITC Hotels received multiple industry accolades, reinforcing its positioning in luxury hospitality and dining. Properties such as ITC Maurya, ITC Grand Chola and ITC Royal Bengal were recognised across global and domestic platforms including Tatler, Condé Nast Traveller, TripAdvisor and Travel + Leisure India. ITC Hotels was also named the Best Luxury Hotel Chain by Travel + Leisure for the ninth consecutive year.
The company continued to advance its asset management strategy, completing planned renovations across key properties by early October. These upgrades focused on enhancing guest experience through refreshed amenities, improved product quality and contemporary design, aimed at supporting higher realisations.
Internationally, ITC Hotels’ mixed-use development in Colombo, ITC Ratnadipa, along with Sapphire Residences, continued to scale up. The hotel sustained its market leadership in RevPAR and turned EBITDA positive on a year-to-date basis. Apartment handovers at Sapphire Residences commenced during the quarter, marking a key milestone for the residential component. Sri Lanka’s improving macroeconomic conditions, coupled with record tourist arrivals of 2.4 million in calendar year 2025, supported performance in the market.
On the development front, India International Convention and Exhibition Centre Limited has allotted land at Yashobhoomi, Dwarka, to ITC Hotels for the development and operation of a premium five-star hotel on a 91-year lease. The property, expected to be completed by 2030, will feature contemporary banqueting facilities and signature dining and is expected to strengthen Yashobhoomi’s position as a global conventions and events destination.
Aligned with its asset-right strategy, ITC Hotels continued to expand through management contracts and partnerships, particularly in Tier-II and Tier-III cities. During the quarter, new hotels were opened in Bodh Gaya, Rishikesh, Siliguri, Sirmaur, Dungarpur and Jaipur. In calendar year 2025, the company signed 28 hotels with 2,790 keys, a 26 per cent increase over the previous year. ITC Hotels crossed a milestone of 150 operational hotels with over 14,000 keys during the quarter.
Sustainability remained a key focus area. During the quarter, ITC Hotels was recognised as the World’s Leading Sustainable Organisation and the World’s Leading Sustainable Employer at the World Sustainable Travel & Hospitality Awards 2025. ITC Narmada in Ahmedabad and Welcomhotel Bhubaneswar achieved LEED Zero Water certification, further strengthening the group’s sustainability credentials. ITC Hotels currently holds the highest number of LEED Platinum-certified hotels globally and continues to lead in LEED Zero Carbon and Zero Water certifications.
The board of directors approved the financial results for the quarter and nine months ended December 31, 2025, at its meeting held on January 20, 2026.
