HBI Staff | Hyderabad 
ITC Ltd., a diversified conglomerate currently demerging its hotels business into a separate listed entity, plans to expand its hotel room inventory by 33%, reaching a total of 17,265 rooms within the next four years. According to a presentation on the company’s hotels business submitted to stock exchanges, ITC also aims to increase its hotel count from 140 to 186.
The bulk of this expansion will be driven by ITC’s upscale Welcomhotel and Fortune brands. Welcomhotel plans to add 1,796 rooms across 13 new properties, while Fortune hotels will contribute 1,439 rooms across 18 new properties. The flagship ITC Hotels brand will not open new properties but will increase its room count by 102 within existing locations.
Other brands in ITC’s portfolio will also see significant growth. Storii will add 578 rooms through 10 new properties, WelcomHeritage will open four new properties with a total of 162 rooms, and Mementos will launch a single property with 223 rooms.
ITC’s growth strategy is anchored in an “asset-right” model, focusing on owning large luxury properties while expanding primarily through management contracts. This approach allows real estate developers to retain ownership of properties while ITC handles renovations and operations, minimizing capital investments and amortization costs for the company. While owned properties typically yield higher margins, the management contract model facilitates faster expansion with lower upfront investments.
The company is also prioritizing growth in its premium hotel segment. By 2029, premium hotel rooms are expected to account for 42% of ITC’s total managed portfolio, up from the current 30%.
In the near term, ITC plans to open at least one hotel every month over the next two years. From November 2022 to October 2024, the company has already launched 28 new managed properties, underscoring its aggressive expansion trajectory.
source : Business Today
